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22 Apr 2015
Expecting a slight improvement in March US existing home sales - DB
FXStreet (Bali) - Joseph LaVorgna, Chief US Economist at Deutsche Bank, expects only a slight improvement in March US existing home sales due to the recent modest uptick in pending home sales.
Key Quotes
"Last week’s housing sector reports were mixed as the improvement in the April homebuilder index was overshadowed by weakness in March starts and permits."
"In turn, we expect only slight improvement in March existing home sales (5.00M forecast vs. 4.88M previously) due to the recent modest uptick in pending home sales.
"The pending home sales index, which measures contract signings, tends to lead existing home sales (contract closings) by one to two months."
"However, Thursday’s new home sales (525k vs. 539k) report for March could be soft given the dearth of supply on the market."
"Last month, the supply of new homes for sale was only 210k. This is up modestly from the historical low of 144k in 2012, but still well below the 30-year average of roughly 320k. The upshot is that the lack of supply should be a positive for residential construction if demand improves."
Key Quotes
"Last week’s housing sector reports were mixed as the improvement in the April homebuilder index was overshadowed by weakness in March starts and permits."
"In turn, we expect only slight improvement in March existing home sales (5.00M forecast vs. 4.88M previously) due to the recent modest uptick in pending home sales.
"The pending home sales index, which measures contract signings, tends to lead existing home sales (contract closings) by one to two months."
"However, Thursday’s new home sales (525k vs. 539k) report for March could be soft given the dearth of supply on the market."
"Last month, the supply of new homes for sale was only 210k. This is up modestly from the historical low of 144k in 2012, but still well below the 30-year average of roughly 320k. The upshot is that the lack of supply should be a positive for residential construction if demand improves."