US: Existing home sales expected to post a 1.3% decline in July – Nomura

Research Team at Nomura, notes that the US existing home sales have steadily increased every month since February, but supply constraints remain the major source of the bottleneck in this sector.

Key Quotes

“The months’ supply of existing homes remains below levels seen in previous years. In June, the supply stood at 4.6 months versus 5.0 and 5.5 months in the prior two years. Pending home sales, which tend to lead existing home sales by one to two months, declined in May and June. Therefore, we expect some negative payback and forecast a 1.3% decline to an annualized 5500k in July."