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Pending Home Sales Index down 16%

The Pending home sales index was released this week and the decline was far below the consensus….pending homes sales dropped 16% from the previous month…that is a big number.

Why the big drop….? The first time homebuyer tax credit was scheduled to end at the end of November – and we saw huge upticks in our sales that month. Pending homes sales are a indication of what future closings may be in the next 90 days, basically we borrowed sales from December and January to cover November…think Cash for Clunkers.

Now that the First time home buyer tax credit has been extended through June 30th of this year we would expect to see pending sales rise again in anticipation of this new dead line….but just as we saw pending sales drop this month, I expect the same thing to happen after the June 30th dead line.

I have always said that real estate is a rollercoaster ….mix in all the government incentives and you have a bumpy ride!!!!!

I wanted to remind everyone to listen to the Radio show every Sunday on News Radio 590 KLBJ from 11-noon. They show is simulcast at 99.7 FM also.
John McClellan

{ 2 comments… add one }
  • phony37 January 10, 2010, 1:57 PM

    John, Were can we see this data? Can you post it when you refer to it?

  • John McClellan January 10, 2010, 3:12 PM

    Will do….check again tomorrow and I will update post…

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