Pending Sales of Existing U.S. Homes Decrease 2.6%


Inquiring minds are reading Bloomberg and seeing yet another decrease in home sales data. This time it is Pending US Home Sales Decrease 2.6%:

The number of contracts to purchase previously owned houses unexpectedly fell in June, indicating demand kept unraveling after the expiration of a homebuyer tax credit.

The index of pending home resales dropped 2.6 percent from the prior month, figures from the National Association of Realtors showed today in Washington. Economists projected a 4 percent gain, according to the median forecast in a Bloomberg News survey. The expiration of a government tax credit on April 30 caused the gauge to slump 30 percent in May, the most since data began in 2001.

Remember those pesky unemployment numbers and analysts saying that policy is preventing employers from hiring:

The end of the incentive worth as much as $8,000 means a sustained recovery in housing now depends on employment and wage gains, which are taking time to rebound. Personal income and spending unexpectedly stagnated in June, a further indication the economy slowed entering the second half of the year, another report today showed.

Remember those howls coming from the administration and their liberal analysts yelling about how the credit was helping? How they showed disdain for the free market economists who said the Home Buyer Tax Credit was just pulling demand forward and wasn’t actually creating sales? Well:

“We’re still seeing the aftereffects of the homebuyer tax credit expiration,” said Dean Maki, chief U.S. economist at Barclays Capital Inc. in New York, who forecast a decline in June pending home sales. “The comeback from the housing downturn is likely to be sluggish.”

Amazing how and when the true is revealed.

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