New home sales probably jumped by 10.7% month-over-month in April to an annualized pace of 425,000.
This is according to Bloomberg survey of economists, who expect a partial rebound from March’s stunning 14.5% drop.
“Lagged effects from the weather and ongoing supply and affordability issues likely prompted the sharp drop in new home sales in March,” said Nomura’s Lewis Alexander who sees a 6.8% jump in April sales.
Societe Generale’s Brian Jones is on the bullish end of those surveyed. He sees sales surging 19.8% to 460,000 “buoyed by improved weather conditions.”
All of this comes in the wake of a series of disappointing housing market reports.
“Low supply and inclement weather appear to have crimped home sales in recent months,” said UBS’s Kevin Cummins.
Whatever the improvement may be, today’s new home sales report should probably be taken with a grain of salt.
“The new home sales data are highly volatile,” warned UBS’s Kevin Cummins who sees a 12.0% jump. “Similarly, we would not view a rise in the upcoming report as evidence of a turnaround. Even with the rise we are forecasting, sales essentially would be moving sideways over the past year.”
The new home sales report will be published at 10:00 a.m. ET. We’ll cover it live on BusinessInsider.com.
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