The existing home sales report is due out today, with a consensus forecast for 5.38M home sales in July vs. 4.72M in June and 3.91M in May.
Bank of America expects a mark of 5.40M. The firm also thinks bigger things are in play. “The pandemic has led to a shift from urban areas towards more suburban or rural neighborhoods where homeownership is more affordable. This is one of several factors underpinning the homeownership market,” previews BofA.
“While we are confident that existing home sales will see strong upside in the next report we are less confident that it will similarly surpass the prior cycle high, at least not yet.”
Last month, homebuilders that were volatile after the existing home sales report dropped included D.R. Horton (NYSE:DHI), KB Home (NYSE:KBH), Toll Brother (NYSE:TOL), NVR (NYSE:NVR) and William Lyon Homes (NYSE:WLH)