Housing data points to slowdown in sales
Article via Reuters
By Supantha Mukherjee
Signed contracts for the sale of existing U.S. homes retreated from a 1-1/2-year high in December and demand for home loans fell last week, pointing to a moderation in home sales after recent hefty gains.
But the reports on Wednesday did not change perceptions that a nascent recovery is under way in the housing market, which continues to be challenged by an oversupply of properties.
“This is potentially negative for January existing home sales although the two do not always go hand in hand,” said Jennifer Lee, a senior economist at BMO Capital Markets in Toronto. “So does this mean the story has changed and housing is back in the dumps? Nope.”