U.S. existing home sales rate likely to have accelerated in November

The U.S. existing home sales are likely to have increased in November. In October, the existing home sales had rebounded strongly as weather disruptions had disappeared. Contract closings were up 2 percent to a 5.48 million unit rate. October’s existing sales report implied a good start for the fourth quarter rebound in residential investment in GDP. According to a Wells Fargo research report, the existing home sales pace is expected to have accelerated again in November. Residential investment is likely to be a positive contributor to the fourth quarter economic growth following two quarters of decline.

Inventory of homes for sale continued to drop in October, which is limiting sales and pushing up selling prices. Looking through the temporary weather disruptions, the greater issue in the existing home sales market is the general lack of available inventory, stated Wells Fargo.

“This is likely to keep a significant pickup in sales activity in 2018 more difficult, although we still expect next year to be stronger than 2017”, added Wells Fargo.

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