FEATURED ARTICLE: Guest Speaker – Lynn Miller MARKET STATISTICS: Weekly Change
ECONOMIC STATISTICS:
U.S. Existing Home Sales – March U.S. existing home sales doubled expectations in March, jumping 6.1% to 5.19 million units annualized, the largest percentage increase singe December 2010 and the highest since September 2013 (or 1½ years). The increase, for both singles and condos, come on the heels of an upwardly revised February. As well, this was the first time in 2015 that sales cracked the 5 million mark. More sales closed around the country: Northeast (+6.9%), Midwest (+10.1%), South (+3.8%) and West (+6.3%). The number of homes available to any buyer who has funding and/or good credit remains low, by historical standards, but it has crept higher for two months in a row. Total inventory of homes for sales cracked the 2 million market for the first time in four months but, coupled with the jump in sales, the month’s word was lowered to just 4.6 This is the fourth straight month around the 4½ months’ supply mark, which supply indicates a tight market. The borrowing costs are still low and the multi-year jobless rate is a good source of support for those in the market looking to buy a home. This proved particularly so for first timers: they made up 30% of home sales, the largest share in four months. Homebuyers are coming out of hibernation, and it looks like this report, and future reports, will be heating up with activity.
U.S. New Home Sales – March Unlike the market for existing homes, the newly constructed segment struggled in March. U.S. new home sales took a dive last month: the worse-than-expected 11.4% drop to 481,000 annualized units (lowest in four months) was the largest percentage decline since July 2013. However, it should be noted that the March drop follows three consecutive monthly gains and comes on the heels of February’s upwardly revised level of 543,000 units, which was the highest in seven years. Some retracement was expected. However, the size was a bit startling, but it is not unheard of to have double-digit declines in this series. There were no special factors that come to mind; can’t blame the weather. In fact, all regions except for the Midwest took a hit. And it took a little while to sell a home… 4.0 months, from being completed to being sold, which is the longest in nearly two years. Overall, the pace is sluggish but the trend in new home sales is still higher. Homebuilder confidence perked up for the first time in half a year and they continue to report more orders. A bounce back in the next month or two is expected.
Mr. Lynn Miller is currently a partner and executive vice president at Delaney Capital. Lynn Miller joined Delaney Capital in 1993 as a partner and portfolio manager. He works with Kiki in the daily management of all Delaney Capital portfolios. His primary focus is investment research and the analysis of companies. He is also actively involved in client presentations. Prior to joining Delaney Capital, Lynn Miller was a portfolio manager with Mucana Investment Counselling, a subsidiary of The Mutual Life Assurance Company of Canada, as well as a member of the Canadian equity team. He began his investment career at Mutual Life as an investment analyst. Lynn Miller has an Honours Bachelor of Commerce degree from Queen’s University and is a CFA charterholder. He serves on the Board of the Toronto French School, and is the Chair of the TFS Foundation and a member of the Investment Committee. To listen to Lynn Miller speak at Crescent School, please come by to Room 303 on Thursday, April 30, 2015 at 3:30pm.
Canadian Provincial GDP by Industry (2014) - Tuesday, April 28, 2015 at 8:30am
Can. Industrial Product Price Index – Mar. - Wednesday, April 29, 2015 at 8:30am
U.S. Real GDP – Q1 - Wednesday, April 29, 2015 at 8:30am
U.S. Pending Home Sales – March - Wednesday, April 29, 2015 at 10:00am
Canadian Real GDP at Basic Prices – February - Thursday, April 30, 2015 at 8:30am
U.S. Personal Income and Spending – March - Thursday, April 30, 2015 at 8:30am
U.S. Construction Spending – March - Friday, May 1, 2015 at 10:00am
Thursday, April 30, 2015 at 3:30pm - Team-Wide Meeting