Existing Home Sales as forex indicator

The existing home sales index by the realtors is yet another important index about retail state market. The report is being published on 25th of every month, and it contains data related to the price of existing homes that cover the whole U.S. The home statistics include single-family and condo’s home.
These statistics are used in a combination with a couple of other statistics like pending and new home sales to track the path of the housing society and its impact on the economy. The data doesn’t include the interest rates. March to June is the peak time period in U.S when most of the home sales are being made. If during this time period, the sales decrease than this means that housing market is showing weak position.
The existing home sales data doesn’t leave any important impact on the economy. In fact, the reason behind a minimum impact is that houses are sold not created. However, the only ongoing economic activity comes when the purchaser spent money on the interior of the home-like painting or carpets.
On the other hand, the increase in the volume of sales could leave a positive impact on the market. A huge amount of economic activity is being generated through this, and in some cases this can help in the recession time. Markets pay a lot of attention on the sale of used home because it gives a general direction about the condition of the economy. For the majority of people, a house is really a wealthy item, and this wealth is being available in the whole country.
In the end, the concept is that the core of the market doesn’t react when existing homes are being put on sales, but it does react when the new homes are being put on sale.