US existing home sales likely to have eased in June

Existing home sales in the US are expected to have eased in June after rising for three consecutive times, noted Societe Generale in a research report. In the past three months, existing home sales rose a total of 9 percent. In the spring selling season, both condo/co-op sales and single-family sales were up; however, the drop in pending home sales index hints at a decline in re-sales, according to Societe Generale.

The pending home sales index had dropped 3.7 percent on a seasonally adjusted basis in May, leaving it 0.2 percent below its year-ago level. This was the first negative print since August 2014. A print consistent with the projection would leave the six-month average of re-sales at about 5.4 million, which, in spite of the increase in sales this spring, would match the October 2015’s reading, stated Societe Generale.