US home resale activity stalled in recent months, in part driven by unseasonably cold weather. Pending home sales, a reliable leading indicators of existing sales, suggest that resale activity increased in March.
Pending sales, which capture contract signigns, increased by 3.1% mom in February. Accounting for lags and for possible contract cancellations, a 2.2% mom increase is projected in March closings which would bring total resales to 4.987 mln units, the highest print since December.
"Going forward, we see only modest upside for existing home sales due to limited inventories. Instead, any pickup in housing demand is likely to drive new home sales, benefiting residential investment", says Societe Generale
