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US existing home sales hit 18-month high in March

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The sales of existing homes in the United States rose to their highest level in 18 months in the month of March as more and more homes came on the market, signaling a strengthening housing sector ahead of the selling season of spring.

The report of the National Association of Realtors, which was released on Wednesday, showed that the existing home sales rose 6.1 percent to an annual rate of 5.19 million units last month. This was the highest level reported since September 2013. Moreover, the percent surge was the largest since December 2010.

According to the market analysts, the fairly upbeat report provided another indication that the country’s economy was regaining some amount of momentum after striking at a speed bump at the beginning of the new year.

However, data on housing starts, retail sales and manufacturing indicate the rebound in second-quarter growth will likely be inadequate to convince the US Federal Reserve Bank to begin raising rates of interest in June.

Gennadiy Goldberg, an economist at New York-based TD Securities, said, “The stronger rebound in home resales is extremely encouraging as it hints at a nascent rebound in economic activity over the coming weeks.”

Several economists had predicted home resales increasing to only a 5.03 million-unit pace in March.

The US housing index declined in line with the broader stock market. The greenback emerged weaker against a basket of global currencies. The US Treasury debt prices also witnessed a drop.

 

 

US home resales rebound modestly in February

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A U.S. flag decorates a for-sale sign at a home in the Capitol Hill neighborhood of Washington

The sale of existing homes in the United States rebounded modestly in the month of February as a continued shortage of properties in the country’s housing market spurred the biggest jump of prices in a year.

The National Association of Realtors (NAR) on Monday released its report showing that the existing home sales in the United States increased 1.2 percent to a rate of 4.88 million units annually. That left the bulk of 4.9 percent drop recorded in January intact.

Lawrence Yun, chief economist at National Association of Realtors, said, “Insufficient supply appears to be hampering prospective buyers in several areas of the country and is hiking prices to near unsuitable levels.”

Analysts believe the trend could lead to undermining the spring selling season.

Several economists had made forecast of home resales increasing to a pace of 4.90 million units in February.

Market analysts said that the sluggish sales of existing homes offer another sign that the economic activity in the country slowed significantly during the first quarter. Moreover, the development has further lowered the expectations that the Federal Reserve Bank will tighten its monetary policy and raise the interest rates in June.

The US dollar dropped against a basket of major currencies and the prices for the US Treasury debt were changed minimally.

The US housing index surged 0.33 percent, in consequence with a sbit firmer stock market. Shares of DR Horton, the largest homebuilder, added 0.25 percent. Lennar Corp increased 0.83 percent, while Pulte Group advanced 0.45 percent.

 

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