Current data released for the May real estate and consumer spending activity suggests a wave of refinancing is taking place – and not much else. slipped to 69. That level is 7.4 points below the lowest level in 2010 – at the height of the 2008-09 credit crisis that collapsed the global real estate values. How big is this new low level in Pending home sales? It’s huge.
It suggests the rate of sales in the U.S. for real estate has collapsed beyond levels that were seen at the worst possible time in recent history (July 2010). In fact, over the past 20 years, there has never been a time when the pending home sales index has collapsed below 74 to 75 – until today.
2008-2011 Pending Home Sales Data
The sudden collapse of Pending Home Sales as a result of the COVID-19 virus event should not have come as any surprise to skilled technical investors. Don’t misread this data – there are still homes selling in the U.S. market, buyers are just being far more selective and…