The real estate market is theoretically doing very well in the United States. Wood prices are reaching record and abstract levels. Powell also referred to the real estate market yesterday, pointing out that supply is low, demand is high, which leads to a significant increase in prices.
However, today's data raises some doubts. The index of pending home sales for March is rising only by 1.9% MoM against expected 5.0% MoM. Previously there was a gigantic decline of 11.5% MoM in February, but it was related to poor weather. Why such a low increase? This may be related to the low supply of homes. In annual terms, this is an increase of over 25% YoY, which shows that the market is doing well, while the low monthly dynamics is probably related to the low availability of houses. Such assumptions may be confirmed by the sale of existing houses. On the other hand, overall sales are expected to improve with increasing supply, as evidenced by the number of house builds started.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
The declines on the US500 are probably the result of the opening of the session and the analysis of the latest data in the context of yesterday's Fed meeting and Biden's speech. Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
