Due to unseasonable cold weather US home resale activity stalled in recent months. Pending home sales suggest that resale activity increased in March.
Pending sales rose by 3.1% mom in February. Accounting for lags and for possible contract cancellations, Societe Generale projects a 2.2% mom increase in March closings which would bring total resales to 4.987mln units, the highest print since December.
Going forward, only modest upside is seen for existing home sales due to limited inventories. Instead, any pickup in housing demand is likely to drive new home sales, benefiting residential investment.
