Market Forecast: Case-Shiller Home Price Index, Pending Home Sales, and Construction Spending
Markets are closed today in observance of Memorial Day. This week’s scheduled reports will include the final numbers of May and the first numbers of June. The Case-Shiller home price index comes out Tuesday, pending home sales index comes out Wednesday, and construction spending comes out Thursday.
The S&P CoreLogic Case-Shiller home price index tracks changes in the value of homes previously involved in two or more sales transactions across 20 major metropolitan areas. The data lags one month, but provides a gauge of home price appreciation or depreciation. In February, the index posted a 5.8% year-over-year gain, driven by price appreciation in the Pacific Northwest.
The pending home sales index measures homes that are currently under contract but the sale is not yet closed. Typically, homes can remain under contract for four to six weeks. Pending home sales are used to predict upcoming housing market activity. In March, pending home sales declined 0.8%.
US construction spending measures all spending on construction projects both private and public. Construction spending triggers job creation, spurs the economy with the purchase of construction materials, and provides data for housing market predictions. In March, construction spending declined 0.2% overall, but residential construction spending posted gains.
Disappointing numbers in existing and new home sales indicate a slow start to spring home buying season. This week’s pending home sales and construction spending reports will reveal whether or not numbers are turning around.
Sources: Bloomberg, MarketWatch, Mortgage News Daily