US: The long slide in home sales Appears to have ended - Wells Fargo

Data from the US showed that pending home sales fell 1.0% in February after a 4.3% gain in the previous months. Analysts at Wells Fargo point out that while the return of winter weather accounts for much of the pullback, pending sales rose solidly in the South and West.

Key Quotes: 

“Given the long slide in home sales during most of 2018 and the sharp drop in sales late last year, the first two months of 2019 have marked a bit of a respite.”

“The Fed’s more dovish tone on interest rates has likely arrested the slide in home sales but has not yet engendered a recovery. The improvement in pending home sales has been confirmed by some modest improvement in mortgage purchase applications.”

“After surging 8.9% in January, pending sales rose 1.7% in the South, which accounts for the bulk of home sales. Pending sales also inched up 0.5% in the West, marking the fourth consecutive gain. Sales remain down year-over-year in all regions, however.”