US: Expect a 1.0% decline in existing home sales – Nomura

Analysts at Nomura expect a 1.0% decline in US existing home sales in December to an annualized pace of 5750k (Consensus: 1.9% decline to 5700k), after two consecutive months of hurricane-related increases.

Key Quotes

“November’s existing home sales data brought the three-month increase to 8.6%, the highest reading since January 2011. Part of the increase was attributable to stronger-than-expected pent-up demand in the South after the active hurricane season. Thus, we expect some moderation in December as weather-related demand recedes. With continued deterioration in the inventory of previously-owned homes, we expect growth in existing home sales will continue to moderate over the medium term.”