Both existing home sales and new home sales are showing positive trends in housing as one of the drivers of US growth. Existing inventory was largely unchanged in March at 1.93 million units but median home prices rose 11.8% on a year-over-year basis. That kind of growth hasn't been seen since November of 2005.
Organic demand is helping drive sales on the new home sales front. New home sales rose 18.5% year-over-year in March to 417,000 units. We believe that over time, new home sales could double based on current levels as household formation trends show increased demand combined with a jump in new housing starts.