US: Expect a steady pickup of new home sales - Nomura

Research Team at Nomura, suggests that the US new home sales have trended notably higher this year.

Key Quotes

“Since starting out the year at an annualized 530k in Q1, new home sales are now averaging an annualized 594k. In the latest reading, new home sales were 654k in July, the strongest annualized pace of sales since late 2007.

We remain positive on the housing market and expect a steady pickup of new home sales as more new construction comes on the market. But, in the near term, we expect some pullback after a strong month in July. We forecast a decline of 5.0% to an annualized 621k in August.”