Pending Home Sales Drop 16%, Factory Orders Up 1.1%
January 5th, 2010 - Down 16 % from 114.3 reported in October, pending home sales declined for the first time in ten months. Falling well below expectations, contracts to buy previously owned homes have weakened a considerable amount. However, NAR chief economist, Lawrence Yun, still takes comfort in the positive sales strides made since last year.
"The fact that pending home sales are comfortably above year-ago levels shows the market has gained sufficient momentum on its own," Yun stated in regards to yesterday's data release. "We expect another surge in the spring as more home buyers take advantage of affordable housing conditions before the tax credit expires."
Fronted by gains in business development, factory orders confidently increased 1.1% to 365.30 billion. Doubly more than what Wall Street predicted, demand amongst industries has made a broad based mount from the 2.1 % fall in October.
With business development paving the way for factory improvements, companies are believed to be expanding their production and expenses.