Existing Home Sales is an important indicator of economic health as it refers to houses sold during the previous month, excluding new construction. It is released by the National Association of Realtors and, once again, it refers to old buildings that are being sold during the previous month.
It is an annualized indicator, so the monthly data is multiplied by twelve. Existing Home Sales is an important indicator as they make up for the majority of monthly sales and this is why it is more important than the New Home Sales indicator.
The most important things to take into consideration when looking at the Existing Home Sales indicator are:
- Release date: monthly, about 20 days after the month ends;
- Release time: 14:00 GMT, during the North American trading session;
- First tier data;
- Actual > forecast = positive for currency;
- Actual < forecast = negative for currency;
- since the financial crisis in the United States, market tends to be highly sensitive to any information related to the housing sector in the US;
- high levels of volatility;
- data watched with great interest by traders.