US: Pending Sales point to strong start to 2018 - Wells Fargo

According to analysts from Wells Fargo, home buying appears set to begin the new year on solid footing after the latest report showed that National Association of Realtors’ (NAR) pending home sales index rose 0.5% n December.

Key Quotes: 

“Pending home sales rose 0.5 percent in December, marking the third consecutive gain. Rising pending sales mean existing sales, or closings, will have solid momentum at the start of 2018.”

“Pending sales rose 2.6 and 1.5 percent in the South and West, respectively. The Northeast fell 5.1 percent after two monthly gains. Sales had previously benefited from mild weather but winter finally showed up. Pending sales also fell in the Midwest.”

“Pending sales reached their highest level since March. Rising mortgage rates and expectations of further rate hikes may have pulled some buyers forward. Price appreciation has also shown no signs of slowing down behind supply issues.”