US Existing Home Supply Shortfall Sees Sales Fall Three Months Straight

April US existing home sales from the National Association of Realtors fell 2.7% to 5.858 million v forecasts of a 2 percent rise. Notably pressure is coming from the supply of existing homes for sale remains near all-time low levels. This is creating affordability pressures for prospective buyers.   Mortgage rates have risen from record low levels as the economy reopens from coronavirus-induced restrictions. April 2021 US Existing Home Sales from the National Association of Realtors After months of gains … Continue reading “US Existing Home Supply Shortfall Sees Sales Fall Three Months Straight”

Zillow Earnings Beat as Housing Market Outlook Brightens

Real Estate firm Zillow returned a profit for the first quarter versus a loss a year ago. $Z is benefiting from the housing boom where US March housing starts soared in March 19.4%, the highest reading since June of 2006. The median existing home price was the highest on record. 

US March Core PCE MoM +0.4% vs +0.3% expected

The favorite inflation measure of the Fed, core PCE Price Index, which excludes food and energy, increased 0.4% ahead of consensus 0.3% and up from last month’s +0.1%, putting it up 1.8% year-over-year. The PCE Price Index jumped 0.5%, as expected, putting it up 2.3% year-over-year, the most since 2018

US March Existing Home Sales Lower as Median Price Hits Record High

March US existing home sales from the National Association of Realtors rose 6.01m vs 6.11m expected. Sales -3.7% m/m vs -1.8% expected (-6.6% prior) from an upwardly revised 6.24 million (from 6.22 million) in February. Notably pressure is coming from the supply of existing homes for sale remains near all-time low levels. This is creating affordability pressures for prospective buyers. /p>

US Housing Starts Soared 19.4% in March To Highest Since June 2006

  US March housing starts soared in March 19.4% m/m vs +13.5% expected, or 1739K v 1613K expected and February’s revised 1457K. The highest reading since June of 2006, after harsh winter weather affected activity in February. Building permits were 1766K v 1750K expected.

China First Quarter GDP Grows At Strongest Pace On Record At 18.3%

The Chinese economy rose 18.3% yoy in the first quarter, though lower than the market consensus of 19%. China’s growth accelerated from 6.5% growth in Q4 . This was the strongest pace of expansion since 1992 (when records were first published)

China Consumer and Producer Inflation Pace Quickens in March

Inflation in China came in higher than expected levels for both the consumer and producer in March. CPI 0.4% y/y (vs. expected 0.3%) & PPI 4.4% y/y ( vs. expected 3.6%) the quickest pace of increase since 2018.  China Inflation March 2021 Consumer price index CPI 0.4% y/y, vs expected 0.3% y/y, prior – 0.2% for the m/m at -0.5% This was the highest reading since October 2020. On a monthly basis, consumer prices fell by 0.5 percent in March, … Continue reading “China Consumer and Producer Inflation Pace Quickens in March”

People’s Bank of China Warn on Leverage of Chinese Households

The PBOC issued a research paper on the Chinese households credit situation highlighting that a household credit boom could tend to drag down economic growth more so than corporate debt.  Mortgages are handcuffing China’s economic potential, as funding is redirected toward real estate and away from more productive uses.

US February New Home Sales 18.2 pct Lower on Increased Supply and Winter Storm

US New Home Sales in February were 775K vs 870K expected and down from prior 923K. Sales -18.2% vs -5.7% expected to the lowest in 9 months. The Midwest sales fell 37.5% with extreme cold weather however all regions fell back so weather was not the only negative impact.