Economic week ahead: house prices, jobless claims
Data on average home prices in major metropolitan areas and pending home sales is expected this week.
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Tuesday
The S&P CoreLogic Case-Shiller National Home Price Index, which measures average home prices in major metropolitan areas nationwide, is expected to slow for the year ended in October, but still remain historically high. Economists polled by the Wall Street Journal estimate that the Case-Shiller Index of the 20 cities rose 18.6% in the year ending October, down from the 19.1% annual rate of the last month.
A limited supply of housing coupled with strong home-buying demand has contributed to the crowding out of some buyers from the market, a trend that has persisted throughout the year in boiling real estate markets like Phoenix and Austin, in Texas.
Wednesday
Economists expect a report from the National Association of Realtors to show that pending home sales in the United States slowed to a seasonally adjusted increase of 0.8% in November from October. This would be significantly lower than the 7.5% increase from the previous month.
Pending home sales are a forward-looking measure of properties under contract. Sales are usually finalized within a month or two of signing.
Despite the estimated slowdown, the existing home market is on track in 2021 for its strongest sales in 15 years due to factors such as rising stock values, low interest rates and a labor market. solid.
Thusday
Unemployment claims in the United States, reported by the Department of Labor, have remained near their lowest level in recent weeks. This reflects a tight labor market where employers are keeping their workers, despite concerns over the Omicron variant of Covid-19.
Initial claims and the four-week moving average, which dampen weekly volatility, fell to their lowest level in more than half a century this month. Economists estimate that the first claims for unemployment benefits, an indicator of layoffs, will remain close to this level during the week ending December 25.
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