US: Pending home sales posts a modest 0.4% increase in March – Nomura

Analysts at Nomura note that the US pending home sales increased a modest 0.4% m-o-m in March, while February sales were revised down to a 2.8% m-o-m increase (previously reported as a 3.1% gain).

Key Quotes

“The modest gain for March portends less momentum in existing sales in coming months. Yet, a transitory impact from colder-than-usual weather in March may have dampened contract signing somewhat. Supply constraints continue to be a major concerns among realtors. The National Association of Realtors indicated that although demand was strong, the shortage of inventory of existing homes lowered sales. Rising home prices above the pace of income growth could dampen consumer demand over the medium to long term, in our view.”