February 19, 2021 | 10:20
Let's keep this short ... yes, there is still a strong demand for homes, for all kinds.
U.S. existing home sales unexpectedly rose for the second month in a row, up 0.6% in January to a 3-month high of 6.69 mln units annualized. This is a good surprise, given the unsteady job market and as pending home sales have been down for four consecutive months.
Keys were given out for both singles (+0.2%) and multis (+4.1%), and there are pretty slim pickings for what's left. The inventory of homes available to be sold fell further, to record low, while the months' supply shrank to 1.9. Wow.
High demand = higher prices. See the chart below.
Bottom Line: We can still count on what seems to be an insatiable demand for housing to boost the economy. Upside risk for new home sales given the lack of supply from the existing segment.