The U.S. existing home sales report beat estimates
The U.S. existing home sales report beat estimates with a 2.0% October sales rise to a 5.60 M new cycle-high ate after a boost in the September pace to a 5.49 (was 5.47) M clip, leaving a rise above the prior cycle-high rate of 5.57 M in June. Analysts saw a seasonal 1.3% median price drop to $232,200 after a small September boost that further unwound the spring-climb to a $247,600 all-time high in June, while inventories fell 0.5% to a lean 2.02 M. Existing home sales look poised to rise at a solid 16% rate in Q4 with a likely lift from mild weather, after an 8% Q3 contraction rate that only partly trimmed a 16% clip of Q2, leaving an erratic uptrend since 2010 intact. Existing home sales are poised for a 3.7% 2016 increase after a larger 6.5% 2015 rise but a 2.9% 2014 post "taper-tantrum" drop. W now have cyclical increases of 62% for existing home sales and 44% for pending home sales, versus larger cyclical gains of 120% for new home sales, 177% for housing starts, and 140% for permits.