U.S. existing home sales fell sharply in December.
U.S. existing home sales fell sharply in December. Analysts saw a 6.4% decline to 4.99 M, the lowest since November 2015, after a November rise to 5.33 M. Sales fell in all regions. Analysts saw a 6.9% rate of contraction for existing home sales in Q4 after a 10% Q3 contraction rate and a 6.6% Q2 contraction rate. For the year, sales fell 3.5%. Analysts saw a 1.4% December median price decline to $253,600, while inventories plunged 10.9% but posted a 6.2% y/y gain, the fifth since May of 2015. The months supply was 3.9, steady from November. Analysts expect Q4 GDP growth of 3.2% after a 3.4% Q3 clip, though analysts trimmed our "real" residential construction growth forecast to a flat Q4 figure (was 2%) after a -3.6% reading in Q3, with support from disaster rebuilding. Analysts expect growth for "real" nonresidential construction of 3% in Q4 after a -3.4% Q3 clip. Analysts expect growth for real government purchases of 3.2% in Q4 after a 2.6% Q3 clip.