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Home sales have increased in the last year, far more than expected in an economy that saw GDP fall 10.8% in 2020 — with sector indicators offering plenty of evidence of the strength of demand.
New single family home sales increased 2% MoM in February, driven by gains in the West. The inventory of new homes increased while price appreciation appears to be slowing. New home sales are expected to rise 6.7% this year, following a 14.3% gain in 2015
Existing home sales fell to 5.08M from 5.47M in January, but are still 2.2% higher YoY. While transitory factors contributed, a slowdown in the trend of home sales is also evident. We expect home sales to recover and grow around 3.5% YoY in 2016
