Further Confirmation of U.S. Housing Slowdown
Pending sales of U.S. homes declined 1.3 percent in July, the largest monthly fall this year, following a 0.4 percent decrease in June. Pending home sales tracks the number of signed real estate contracts for existing homes and serves as a leading indicator for existing home sales. Given the fall in pending home sales and the plunge in new home sales, we expect existing home sales to follow this declining pattern soon.
U.S. PENDING HOME SALES VS. EXISTING HOME SALES