Would-Be American Homebuyers Find No Respite From Housing Debacle
The good news is, US pending home sales fell less than expected in October.
The 1.5% MoM decline on the NAR's gauge was shallower than the 2% drop consensus expected. The range of estimates from two-dozen economists was -4.4% to 1%.
The bad (or amusing, depending on how you want to look at it) news is, at 71.4, the index now sits at the lowest level in more than two decades of data.
The YoY decline in pending transactions was 8.5%. Obviously, the acute dearth of resale inventory was a facto
I’m I reading that chart right, that Redfin’s index shows faster YoY home price increases than C-S for most of the last decade? That would suggest Case-Shiller, by now, is grossly understating current prices.
I suspect the comparability devil is in the details, like which Case Schiller index is used, how the Redfin index is constructed, etc. If I recall, the Case Schiller indicies are or were the basis of tradable instruments, so perhaps they are calculated more conservatively, or lag more to avoid revisions, or something.
I also clearly recalls Case-Schiller projecting home prices being in significant decline in Q4 of this year in their Q1 projection.