The NAR released its Pending Home Sale Index [NAR] which showed that the real estate market was easing. “The National Association of Realtors said its index of pending home sales, based on contracts signed in October, declined 3.2% from September to a seasonally adjusted 123.8. The reading was down 3.3% from a year earlier. The index was 100 in 2001.”
Positive economic news seemed to offset the weak housing news. Productivity fell, suggesting the inflation pressure is weakening. The post NAR stuck on spin cycle [Property Grunt] makes a strong case that the NAR phrasing of a soft landing does not correlate to the data that they released. Its shows how much spin we are subject to.
Note: “The Pending Home Sales Index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 closely parallels the level of closed existing-home sales in the following two months.”