Pending Home Sales Leap Higher in June

June pending home sales unexpectedly increased 5% MoM in June (consensus -.5% MoM). This is the first increase in this data series in four months, and is in stark contrast to other recent housing data. Pending home sales are based on initial sales contract data for existing (used) homes, and is considered a leading indicator of housing market health. Actual contract closings usually occur a month or two after the initial contract is agreed. Pending home sales for May were revised lower to -3.7% MoM. Existing homes account for about 80% of normal monthly home sales.

All regions of the country saw a rebound in pending home sales. The West saw the strongest gain at +8.6% MoM followed by the South at +4.7% MoM, then the Midwest at +3.5% and the Northeast at +3.1% MoM.

Versus a year ago, pending home sales are down -11.1% nationally. By region the South has seen the greatest decline falling -13.8% YoY. The Midwest has fallen -11.6% YoY, followed by the West at -9.4% YoY and the Northeast at -5.8% YoY.

No house price data was included in today's report.