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26 Apr 2016
U.S, data review, new homes sales declining - Nomura
Analysts at Nomura offered a review for new home sales that declined by 1.5% to an annualized 511k in March, broadly in line with expectations (Nomura: 515k, Consensus: 520k), following a revised 519k sales in February (previously reported as 512k).
Key Quotes:
"Sales were also revised up in January by 19k to 521k. Sales were flat or up in three Census regions (Northeast, Midwest, South) and down in the West, where new home sales activity have been choppy of late. The median sales price was down 1.8% y-o-y."
"This appears to be more of a composition effect as opposed to a supply effect as the number of for-sale homes has been only gradually trending higher, while the share of sales below $299,999 increased by 5pp to 56% in March from 51% in February, the highest share since September 2014."
"We remain constructive on the new residential housing market as solid demand from improving household fundamentals, tight supply of homes and low mortgage rates should continue to spur activity."
Key Quotes:
"Sales were also revised up in January by 19k to 521k. Sales were flat or up in three Census regions (Northeast, Midwest, South) and down in the West, where new home sales activity have been choppy of late. The median sales price was down 1.8% y-o-y."
"This appears to be more of a composition effect as opposed to a supply effect as the number of for-sale homes has been only gradually trending higher, while the share of sales below $299,999 increased by 5pp to 56% in March from 51% in February, the highest share since September 2014."
"We remain constructive on the new residential housing market as solid demand from improving household fundamentals, tight supply of homes and low mortgage rates should continue to spur activity."