24 Feb 2016
US home sales preview - Nomura
Analysts at Nomura offered a preview for the key US data release in the New home sales coming up in the US session.
Key Quotes:
"New home sales exceeded expectations in December, as unseasonably warm weather probably boosted home sales in the Midwest and West regions. Based on data on the market for new homes, such as homebuilder sentiment, single-family housing starts, and permits, we expect sales to continue on an upward trend.
However, we expect some payback in new home sales from the outsized gains in the prior month, as weather conditions were less favorable in January (relative to December). As such, we forecast that new home sales fell by 7.2% to an annualized 505k in January (Consensus: -4.4% to an annualized 520k)."
Key Quotes:
"New home sales exceeded expectations in December, as unseasonably warm weather probably boosted home sales in the Midwest and West regions. Based on data on the market for new homes, such as homebuilder sentiment, single-family housing starts, and permits, we expect sales to continue on an upward trend.
However, we expect some payback in new home sales from the outsized gains in the prior month, as weather conditions were less favorable in January (relative to December). As such, we forecast that new home sales fell by 7.2% to an annualized 505k in January (Consensus: -4.4% to an annualized 520k)."