Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
 
 

Blog Home
   Brian Wesbury
Chief Economist
 
Bio
X •  LinkedIn
   Bob Stein
Deputy Chief Economist
Bio
X •  LinkedIn
 
  New home sales rise 7.3% in April
Supporting Image for Blog Post

 
Implications:  New home sales rose 7.3% in April, beating consensus expectations for the second straight month.  And for the first time since August 2007, sales increased in all four major regions of the country, showing that the gain in sales was widespread and not confined to one area.  On top of that, the level of new homes in inventory fell to the lowest level on record, since at least 1963.  While this is all very good news, it does not necessarily signal the start of a consistent upward trend.  Sales remain in the range we have seen since last May, and the new home market still faces two major challenges.  With such a large number of existing homes on the market, many of which are like new or are in foreclosure and steeply discounted, the new home market isn't as attractive to buyers.  Credit conditions also remain very tight, despite low mortgage rates, particularly for buyers who don't have very good credit scores and a 20% down-payment.  So while housing is clearly beginning to recover, these issues will keep the pace of recovery subdued for the time being.  We expect new home sales to eventually increase substantially, but it will take several years to fully recover.  In other news this morning, the Richmond Fed index, a measure of manufacturing activity in the mid-Atlantic, dropped to -6 in May from +10 in April.  While this number was a disappointment, it is not consistent with other manufacturing indicators that show continued growth in manufacturing.

Click here to view the entire report.
Posted on Tuesday, May 24, 2011 @ 11:46 AM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.