Below is a brief excerpt and chart from today's Early Look written by Hedgeye US Macro analyst Christian Drake. Click here to subscribe.
"... Existing Home Sales: EHS declined -3.4% MoM – predictably recoupling to the Trend in Pending Home Sales. Recall, pending home sales = contract signings while existing home sales = closings so Pending sales effectively signals existing sales a month in advance. There are a couple notables. First, inventory held below the traditional balanced market level of 6-months for a 38th consecutive month as continued supply tightness remains supportive of price trends. Second, in contrast to the headline decline in sales, sales to 1st-time buyers rose +3.2% MoM and accelerated +220bps sequentially to +11% year-over-year in October."