Pending Sales of Existing U.S. Homes Unexpectedly Decreased 2.6% in June

[marmar]

It's always "unexpectedly" with this crowd.



Aug. 3 (Bloomberg) -- The number of contracts to purchase previously owned houses unexpectedly fell in June, indicating demand kept unraveling after the expiration of a homebuyer tax credit.

The index of pending home resales dropped 2.6 percent from the prior month, figures from the National Association of Realtors showed today in Washington. Economists projected a 4 percent gain, according to the median forecast in a Bloomberg News survey. The expiration of a government tax credit on April 30 caused the gauge to slump 30 percent in May, the most since data began in 2001.

The end of the incentive worth as much as $8,000 means a sustained recovery in housing now depends on employment and wage gains, which are taking time to rebound. Personal income and spending unexpectedly stagnated in June, a further indication the economy slowed entering the second half of the year, another report today showed.

“We’re still seeing the aftereffects of the homebuyer tax credit expiration,” said Dean Maki, chief U.S. economist at Barclays Capital Inc. in New York, who forecast a decline in June pending home sales. “The comeback from the housing downturn is likely to be sluggish.” ...........(more)

The complete piece is at: http://noir.bloomberg.com/apps/news?pid=20601087&sid=ald.ecxPaWgQ&pos=1

[MadHound]

1. Why do they keep saying that these sorts of economic indicators are "unexpected?"

This is what happens when sixteen percent of your work force is unemployed, with no end, no hope in sight. People cut back on spending, hold on to what they have, don't go out on a limb.

Until we see this government, this country start creating jobs, our economy is going to continue to be in the tank.