Saturday, May 28, 2011

Pending home sales plummet in April

Pending sales of previously owned homes took a tumble in April, according to data from an industry group, a foreboding sign that the key spring shopping season is off to a weak start.

The National Assn. of Realtors said Friday that its index for pending home sales, which is based on the number of contracts signed each month, fell 11.6% from March and was down 26.5% from the same month last year. The drop in the index was another indicator that buyers are scarce.

"Really the housing market is still in the doldrums," said Gerd-Ulf Krueger, principal economist at "I think what's really holding it back is an utter lack of confidence that this will turn around soon."
April is traditionally considered a good month for home sales.

It's looking like the economy is once again in danger of falling into last year's late spring/start of summer doldrums when one also considers reports this week that GDP growth and consumer spending are trending well below expectations for the first quarter of this year. Note also the interest rate on 10-year T-notes. It's pushing downward and testing 3 percent -- a decidedly bearish indicator.

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