Manufacturing Still Expanding, October Pending Home Sales See 3.7% Gain
December 1, 2009 - The ISM, one of the week's biggest reports, grew at a slower pace last month than many economists predicted. Taking a slight dip down from October's 55.7%, the index fell to 53.6% in the month of November, enough to still signal a manufacturing expansion.
In addition to the ISM Index being released, NAR also reported that October's pending home sales increased to 114.1, a 3.7% increase from September's figure of 110.0. This rise signifies the year's ninth consecutive gain, a first since the index was established in 2001.
"This means the tax credit is helping unleash a pent-up demand from a large pool of financially qualified renters, much more than borrowing sales from the future," NAR chief economist, Lawrence Yun states while weighing in on the recent sales release.
Yun also explains that there may be a decline in the months ahead because of the recent expansion to the tax credit, but that numbers will bounce back in the next few months.
"Given the lag time, we could see a temporary decline in close existing-home sales from December until early spring when we get another surge."