Article Image
News Link • Housing

No, The Plunge In Home Sales Was "Not" Due To Cold Weather

• http://www.zerohedge.com, Tyler Durden
 However, a glance at the chart below confirms this is total bullshit. As Goldman Sachs admits "broad-based declines by region suggest that colder-than-average weather was likely not the primary driver."
 
Pending home sales dropped 8.7% in December (vs. consensus -0.3%), the largest decline since the expiration of the first-time homebuyer tax credit in 2010. Sales declined in the Northeast (-10.3%), West (-9.8%), South (-8.8%), and Midwest (-6.8%).
 
The broad-based declines by region suggest that colder-than-average weather was likely not the primary driver, given slightly warmer-than-average temperatures on the Pacific coast in December.

 Although a noisy series, the December weakness in pending home sales is an unfavorable indicator for near-term existing home sales, and follows disappointing new home sales already released for the month.

Join us on our Social Networks:

 

Share this page with your friends on your favorite social network:


Purse.IO Save on All Amazon Purchases