Slowly but surely the US housing market is climbing out of that deep hole it was in for some time. Pending home sales came in way above expectations (5.9% MoM vs. 1.5% expected).
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| US Pending Home Sales Index (SA) |
A couple of things worth noting about the pending home sales chart above.
- Contrary to popular belief, the housing recession started in 2007, possibly even in 2006, not after the Lehman crash in 08.
- The First-Time Homebuyer Credit stimulus program had a tremendous impact on home sales. It tells us that tax incentive programs are quite effective but have a short "half life".
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