US, data on pending home sales: housing market on the way to recovery – Wells Fargo

29.06.2020 22:42
Data released on Monday showed a stronger-than-expected increase in pending home sales in may, up 44.3% from April. Analysts from Wells Fargo note that sales decreased by 5.1% compared to the previous year. They see the increase in sales as fresh evidence of the housing market moving towards recovery:
"The index of incomplete sales in the housing market is based on contracts signed for the sale of single-family homes, as well as apartments, and is ahead of sales by 30-45 days. In other words, we are likely to see a similar increase in home sales on the secondary market (closed contracts) in the coming months.
Incomplete sales are still 5.1% lower than last year, and almost 11% lower than the February peak. However, the steady growth in mortgage applications also points to further improvement ahead.
Growth above the consensus forecast shows that many sales were probably delayed, rather than canceled, as a result of the blockages."

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