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U.s. Pending Home Sales Down 30% In May

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Read it all here

WASHINGTON (MarketWatch) - New sales contracts on existing homes fell sharply in May after a federal subsidy for buyers expired at the end of April, a trade group reported Thursday. The pending home sales index plunged 30% in May after rising 23% between January and April, the National Association of Realtors reported. The index, which measures signed sales contracts on previously owned homes, was down 15.9% compared with the same month a year ago. The pending home sales index is a leading indicator for sales of existing homes, which are recorded at the time of the closing.

And here is ZH's take on it

This is a biggie, make no mistake about it.

UK HPC next?

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Read it all here

And here is ZH's take on it

This is a biggie, make no mistake about it.

UK HPC next?

So this is what happen when you bring forward demand. :o


Another big leg down into the recognition that i) the recession was really a depression all along and ii) we are smack back in it. The ISM Manufacturing index came at 56.2 on expectations of 59, previous was 59.7. And the stunner - the prices paid index came in at 57 on expectations of 70, with a previous read of 77.5. The crash in margins will be surreal and companies will have no choice but to raise prices. And just so there are no mistakes that the Great Depression 2.0 is here, pending homes sales plunged a massive 30% on expectations of -14.2, and a previous read of 6%. This was the biggest MoM drop on record. Deflation is here, as is a full blown economic contraction, coupled with the complete pull out of the US consumer, who, absent government subsidies, will contain purchases solely to the iPad. Ben Bernanke has no choice but to print money now, or it is game over.

The charts below say it all:


Edited by Confounded
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This is nothing more than pent up demand to get out of sales contracts.

Seriously folks, this is a crystal clear indicator that the recovery has been CANCELLED. Its downhill from now on.

The slightly annoying thing is that we in the UK are currently immune to global phenomena as we have a new government and some bold plans for the future austerity to come.

The lag from across the Atlantic is very long so we may not see any economic ill effects until well into winter. We are basically "well placed" to avoid the troubles in the US, Eurozone and China's bursting bubble.

Classic deflation:

Mortgage rates drop to another low, 4.58 pct.

Average rates on 30-year fixed mortgages fall to 4.58 pct., lowest level since mid-1950s


Alan Zibel, AP Real Estate Writer, On Thursday July 1, 2010, 10:01 am

WASHINGTON (AP) -- Mortgage rates have sunk to the lowest level in more than five decades, but consumers aren't rushing to refinance their loans or buy homes.

Edited by Realistbear
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  • 434 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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