New home sales spiked 11.6 percent in December to a 481,000-unit pace, marking the highest level of sales since June 2008. With the exception of the Midwest, sales rose in every region. Inventories also firmed.
New Homes Sales Came in Better than Expected
- New home sales posted a stronger-than-expected reading in December, jumping 11.6 percent. Although the previous month was downwardly revised, net revisions to the prior three months were positive. The increase in new home sales is consistent with builder sentiment, which registered its third straight monthly reading at a high level. Looking ahead, we expect new home sales to rise 16.7 percent in 2015.
Rising Inventories Will Be a Positive for Sales
- One of the major impediments to a more robust housing market recovery has been the low level of inventories. However, inventories ended 2014 up more than 17 percent over the past year at 219,000 homes. The level marks the highest reading since March 2010. All of the gain in inventories has been in the “completed” and “not started” categories. The number of completed homes for sale is up 38.6 percent from a year ago.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.