US: New Home Sales drop in December, but a solid 2020 is expected – Wells Fargo
|Data released today showed that New Home Sales dropped in December 0.4%. Analysts at Wells Fargo point out the drop left sales well below expectations, which had risen following earlier upbeat reports on resales and regional sales.
Key Quotes:
“New home sales fell 0.4% in December to a 694,000-unit annual rate and sales for the prior month were revised from a 719,000-unit pace to a 697,000-unit pace. The slower sales pace is surprising only because so much of the recent housing data have been so strong.”
“December brought total 2019 sales to 681,000, exactly in-line with our forecast and a 10.3% increase compared to the 617,000 new homes sold in 2018. Revisions to the preliminary data will likely shift this total, but 2019 was certainly a strong year.”
“With mortgage rates low and builder optimism rising, we expect sales to be solid again in 2020. Inventories are low, however, which will exert upward pressure on prices.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.