Salient to Investors:
Economists expect sales of previously owned U.S. homes fell in May and reflect an uneven recovery. Existing-home sales reached a low of 3.39 million annual in July 2010 versus a peak of 7.25 million in September 2005. Foreclosure starts grew in May for the first time since January 2010.
Michael Feder at Radar Logic cautions translating the signals into recovery because they’re not very strong – some signs of an early spring recovery were actually the result of a mild winter and some investor buying.
S&P Supercomposite Homebuilding Index is up 34 percent since end of 2011 versus 7.8 percent gain in S&P 500.
Yelena Shulyatyeva at BNP Paribas sees a pickup in demand throughout the year but very gradual.