The United States April pending home sales, to be released Thursday at 14:00 GMT is expected to move up, given the turnaround of positive sentiments among the consumers. Consumers are reacting rationally to the sharp changes in the value of real estate assets.
Pending home sales figure is likely to tick higher by 0.5 pct m/m in April, following the 1.4 pct m/m increase seen in March. However, home prices are expected to witness further volatility, following upward pressure seen on mortgage rates and ongoing issues related to foreclosures.
However, the housing sector in the States seems to less dependent on rates and more on supply and prices. In many areas of the country the value of real estate assets are seen to decline, given the elevated levels of inventories and foreclosures, reports said.
Both new and existing home supply indicates that prices may remain dampened in historical terms, but likely to continue along their path of recent improvement.
“However, the remaining flow of foreclosed and distressed properties still on the market are likely to continue diminishing prospects for broader stabilization for some time, making the recovery in housing a story likely to develop further over the course of 2016 and beyond.
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