Report released by the National Association of Realtors showed on Friday that US existing home sales increased more-than-expected in April. House prices rose for the 50th successive month on an annual basis.
Data showed that sales units in April rose to a 5.45m annual rate, up 1.7% m/m sa, following a 5.1% gain the previous month. The median price of an existing home rose 6.3% y/y, with sales from the Midwest driving gains, up 12.1%. Inventory of available property dropped 3.6% compared to April 2015.
US Existing Home Sales data helps measure the strength of the US housing market and is regarded as a key indicator of total economic strength. Data follows upbeat US housing starts in the earlier week which showed builders increased the construction of single and multi-family homes.
US New Home Sales data is scheduled for release on Tuesday, 24th may and upticks in mortgage applications and pending home sales suggest that individuals are active in the housing market, but changes in these measures have been small and thus the shift in home sales is not likely to be pronounced.
Daiwa capital markets projects a 0.520mln rise in New Home Sales in April. “The expected change would keep sales of new homes within the recent range and reinforce the flat trend that has been in place for more than a year.” said Daiwa capital markets in a report.
The material has been provided by InstaForex Company – www.instaforex.com