April US pending home sales data
- Prior was +1.9% (revised to +1.7%)
- Sales y/y +53.5% vs +25.3% prior
The y/y number is skewed by the April 2020 comp, which was ultra-depressed by the pandemic.
I don’t think this is an sign of any kind of slowdown in demand. When you look at inventories of homes for sale, they’re insanely low. People can’t find houses to buy and haven’t yet adjusted to the higher prices. I think that it will take some time for the new benchmarks to set in and it will take even longer to get supply of new houses on the market. There’s a multi-year tailwind here and a 30-year fixed is at 3.00%.