Registered Investment Adviser Caleb Lawrence
The major averages couldn’t hold their early gains despite positive economic data and a potential resolution to the trade war with China and enter the final hour with substantial losses.
The CoreLogic/Case-Schiller national home price index gained 6.3% in February on a year ago basis and is up 6.7% from the pre-crisis peak. Looking at the major Metropolitan Statistical Areas or MSA’s pre-crisis peaks and Denver up 52.9% leads, followed by San Francisco +19.8% and Boston with a 16.4% gain. That said Las Vegas remains 24.6% below its pre-crisis peak, followed by Miami -17.1% and Chicago -14.7%. This despite dramatically lower interest rates and much higher aggregate debt levels.
The Richmond Fed regional index fell 18 points in April, missing expectations of a small gain substantially. New orders plunged 26 points to -9.
New home sales advanced for a second month in March with a 4% gain. Month’s supply slipped to 5.2. The median price increased 2.1% to $336,100. Almost all of the sales gain for the month came from the western region as it advanced an impressive 28.3% erasing the declines seen in the last few months.