Pending Home Sales Testing Market Bottom
Pending home sales appear to be testing a new market bottom, as the rate of decline in homes under contract has crawled to a stop. This is very good news, as we cannot expect future home sales to rise if new sales contracts are on the decline.
We measure these new sales contracts, which the industry calls "pending home sales," in order to get a picture of the future of closed home sales (typically 2 months into the future. By tracking contracts, these future closings are follow a consistent pattern.
In the real estate graph above, we observe that the past two weeks has seen some stabilization in what was a plummeting pending home sales report. We hope that this continues and that we can start see this trend rise from what we hope to be the "final" market bottom.