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).
|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".