Rosy economists who said that home sales were being held down by unusually cold weather were right! With spring finally upon us, we are seeing a huge recovery in the housing sector. Pending home sales have snapped 9 straight months of declines!
Pending home sales surged 3.4% in March. The consensus was for 0.6%! That’s a huge positive surprise in pending home sales.
Pending home sales in the West were up +5.7%, and in the South they were up +5.6%.
Home sales have been the weakest link in the economy so far in 2014. Home sales are so important because they often create new output. Home sales often bring an increase in sales of: refrigerators, washers, dryers, furniture, etc. The economic ripple effect can be substantial.