Existing home sales on Wednesday, and new home sales and the FHFA Home Price Index on Thursday should all confirm the improvement in U.S. housing. To capture any upside in recovering housing market, investors can take a look at homebuilder exchange traded funds.
Homebuilders have been strengthening as new permit data points to increased momentum. [Housing Starts Decline Snaps Homebuilder ETF’s 10-Day Streak]
According to Bloomberg data, existing home sales for March was 0.6% lower from February. However, the drop followed gains of 0.8% in January and 0.2% in February, and sales were still 10.3% higher year-over-year. [Housing Starts Decline Snaps Homebuilder ETF’s 10-Day Streak]
On the supply side, there was enough inventory for 4.7 months, compared to the March 2012 supply of 6.2 months. Observers have attributed to the dip in supplies to a greatly reduced pool of distressed properties.