US: Expect 1.3% m-o-m increase in existing home sales for March - Nomura

The research team at Nomura forecasts a 1.3% m-o-m increase in US existing home sales for March to an annualized rate of 5.55m units.

Key Quotes

“Existing home sales dropped 3.7% m-o-m in February. Both single-family home and condo sales fell notably, likely driven by insufficient previously owned properties for sale and weakening affordability conditions that stifled buyers in many regions. Despite these sustaining industry challenges, housing market data suggest steady demand from potential buyers.”

“The latest National Association of Realtor report states that its survey respondents reported stronger prospective buyer foot traffic than a year ago. Moreover, pending home sales data (which track the sale contract signing of previously owned homes) improved strongly in February and the volume of mortgage applications for home purchase rebounded as well. It appears that the negative impact of a colder March may be limited. Altogether, we forecast a 1.3% m-o-m increase in March to an annualized rate of 5.55m units.”