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.
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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
