Pending Home Sales Drop in November

Author:	Lucas Jones
Source:	Homes Discovered
Date:	January 4, 2007

Pending sales of US homes fell by a half of a percentage point in November but remained above the low point set in July.  This data is suggesting that a turnaround in the market has occurred, albeit a very small one.  Analysts were expecting a small rise but instead the pending sales dropped.  The home market continues to slump in Toronto but at least it is not at rock bottom. This data signifies that home sales bottomed out sometime earlier in the year and are beginning to stabilize, but very very slowly.  We are still in a heavily buyers orientated market in Mississauga but this data suggests that we are looking at an improvement in the market in the near future. Pending home sales generally close within one or two months from the contract signing and is a key statistical indicator of the real estate market.  A home sale is pending when a contract has been signed but the transaction has not closed.

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