U.S. existing home sales likely rebounded in September

U.S. existing home sales are expected to have recovered in September. In the previous month, sales dropped 0.9 percent as a 2.3 percent decline in single-family sales was greatly countered by a sharp rise of 10.5 percent in condos/co-ops sales that retraced most of their 12.3 percent decline in July.

Re-sales in September might have recovered by almost 2 percent, stated Societe Generale in a research note. The pending home sales index that leads re-sales by a month or two declined 2.4 percent in August. However, it correlates better with re-sales on an unadjusted year-on-year basis, noted Societe Generale.

On that front, it rose to 4 percent in August from -2.4 percent in July, the most rapid pace of advance since February, indicating towards an increase in existing home sales in September. Year-to-date existing home sales averaged 5.39 million units, which is 3 percent above the 5.23 million average pace seen last year.

“Both the three-month and six-month averages in August were at 5.43 million units, so a reading in line with our estimate would return the pace of re-sales to its trend”, added Societe Generale.