US: New home sales appear to be on pace for a solid 2016 - Wells Fargo

Analysts from Wells Fargo highlight the current positive situation on new home sales in the United States, that recently showed a 3.5 percent increase in June.

Key Quotes:

"New home sales are up 25.4 percent from a year ago and June’s 592,000-unit pace marks a post-recession high, as new home sales are at their highest level since February 2008."

"For the first six months of 2016, new home sales are running a strong 10.1 percent ahead of their year-ago level. At the regional level, new home sales in the Northeast and Midwest have seen the greatest strengthening, reporting a 64.7 percent and 17.5 percent pickup, respectively, on a year-todate basis."

"Existing home sales reached a post-recession high in June, new home construction continues to edge higher and home builder sentiment has remained at a solid level. "

"The recent data are consistent with our forecast for continued modest improvement in the housing market this year."

"Demand for homes is solid across much of the country and recent gains would likely have been even higher if not for the lack of homes available for sale."