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December Wait Shop: +2.5% M/M at 76.9 vs. -0.9% consensus and -2.6% in November (recovery from -4%).
Pending home sales rose in December for the first time since May, ending a six-month decline. “It’s the lowest recently “The housing boom appears to be over,” said NAR Chief Economist Lawrence Yun. transparency in the stabilization of the market.”
Mortgage payments continue to decrease, resulting in a recovery in housing demand. As home buyers remain sensitive to price changes, demand continues to increase, driven by first-time home buyers.
Regionally, the Northeast PHSI fell 6.5% from November to 64.7, down 32.5% from a year earlier. The Midwest index fell 0.3% M/M to 77.6, down 37.5% from December 2021.
The South PHSI rose 6.1% M/M and fell 34.5% Y/Y to 94.1. The West index rose 6.4% in December and decreased 37.5% Y/Y to 58.6.
“The new normal for mortgage payments seems to be the 5.5%-6.5% range,” Yun said. “The South is positioned better than the rest of the country, thanks in large part to better labor market conditions compared to other regions.”
At first, the growth of new buildings top expectations in December.