US Existing Home Sales Preview: The unemployment catastrophe convinces Americans to delay their home plans

Largest housing sector purchases to fall by one million. Housing sales reflect long-term consumer confidence but markets historically do not react to home sales figures, Joseph Trevisani, an analyst at FXStreet, reports.

Key quotes

“Existing Home Sales are forecast to fall 18.9% to a 4.3 million annualized rate in April from 5.27 million as buyers retreat in the face of soaring unemployment despite the most inexpensive mortgage financing on record.”

“As with the many ramifications of the shutdown of the US economy the impact depends on economic recovery and the return of employment.  The old real estate adage about how to decide on a home, location, location, location is now simply jobs, jobs, jobs.”

“It is possible that by the end of the summer people will again be back at work and shopping for homes, but it also possible that the economy and employment takes far longer to return and the housing market becomes yet another casualty of the coronavirus panic.”