U.S. new home sales likely to continue climbing as demand stays strong – wells Fargo
Source: FxWire Pro - Commentary / 22 May 2018 19:03:33 Europe/London
U.S. new home sales data for the month of April is set to be released tomorrow. In the prior month, new home sales had risen above consensus expectation by 4 percent to 694,000 unit pace. This solid print follows an upwardly revised 3.6 percent rise in February, and January had also seen upward revisions.
These upward revisions have brought new home sales to a level more in line with the lofty levels of homebuilder sentiment behind surging prices and eager demand. Western markets have seen the most solid rise in new home sales, rising 28.3 percent in March. Most of this was driven from the migration to markets with relative affordability in inland California, Las Vegas and Phoenix.
“We expect new home sales to continue climbing as demand remains strong and inventories remain thin behind increased input costs and shortages of labor and lots. The migration to affordable markets with less land restrictions will likely be where we will see the strongest growth”, noted Wells Fargo in a research report.
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