Pending Home Sales Continue Decline

December pending home sales fell -1.5% MoM (consensus -1%). In addition, November's decline grew to -3% MoM, from the previously reported drop of -2.6%. Only the Midwest saw an increase in sales (+3.4%), while the other regions saw monthly declines of of -3 and -3.1% for the West and South, and the Northeast fell -1.7% MoM. Over the past year, pending home sales have declined -23.9% nationally. Regionally, in descending order, the Northeast experienced a decline of -27.3%, followed by the South at -26.5%, the West at -23.3%, and the Midwest at -17.4% YoY. Pending home sales represent signed contracts to purchase existing homes. The actual conclusion of the sale appears in the existing home sales data 1-2 months later.