In February, existing home sales rose by 5.1% M/M to 4.72M, while the consensus was looking for a slight decline. The unexpected rebound was led by a 11.4% M/M rise in sales of condo’s, while sales of single family homes rose by a more moderate 4.4% M/M. Months’ supply stayed unchanged at 9.7, while price data were mixed. The median price of an existing home dropped slightly (from $164 800 to $165 400) compared to one month ago, while the average prices rose (from $206 700 to $209 700). Regional data showed that the increase in sales was driven by a 15.6% M/M boost in sales in the northeast. This is another positive sign from the housing market after the upward surprise in housing starts and permits, but it is too early to conclude that the housing market is recovering and therefore we look out whether these figures will be confirmed in the next month.
EMU: trade deficit widens in January
In January, the euro zone trade balance showed a widening deficit. The deficit rose from a revised 1.7B to 5.5B, while the consensus was looking for a shortage of 1.9B. Looking at the details, exports plunged by 10.7% M/M, while imports fell by 7.3% M/M. In the coming months, both imports and exports are forecasted to remain weak as the global slowdown undermines both exports and imports.
