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Sales of newly built homes tumbled over 16% in April while prices soared

  • Sales of newly built homes sank to the slowest rate since the start of the Covid pandemic.
  • The median price of a new home sold in April was $450,600, an increase of nearly 20% from the year before.
  • Slower sales caused the inventory of newly built homes to jump sharply as well to a nine-month supply. A six-month supply is generally considered balanced between buyer and seller.
  • Sales of newly built homes dropped 16.6% in April from March, far more than expected, and were down 26.9% from April 2021, according to the U.S. Census.
  • The annualized rate came in at 591,000 units, seasonally adjusted. Analysts had been expecting 750,000. March’s read was also revised lower.
  • That is the slowest sales pace since April 2020, when everything shut down at the start of the Covid pandemic. Sales surged quickly after that, as Americans sought bigger homes with outdoor spaces for quarantining.
recession

What is recession

A recession is a macroeconomic term that refers to a significant decline in general economic activity in a designated region. It had been typically recognized as two consecutive quarters of economic decline, as reflected by GDP in conjunction with monthly indicators such as a rise in unemployment. However, the National Bureau of Economic Research (NBER), which officially declares recessions, says the two consecutive quarters of decline in real GDP are not how it is defined anymore.

Elon Musk Makes $43 Billion Unsolicited Bid to Take Twitter Private

  • World’s richest person will offer $54.20 per share in cash
  • Tesla executive is one of Twitter’s most-watched firebrands.
  • Billionaire entrepreneur Elon Musk offered to take Twitter Inc. private in a deal valued at $43 billion, lambasting company management and saying he’s the person who can unlock the “extraordinary potential” of a communication platform used daily by more than 200 million people.The world’s richest person said he’ll pay $54.20 per share in cash, 38% above the price on April 1, the last trading day before Musk went public with his stake. The social media company’s shares were little changed at $45.81 in New York on Thursday, a sign there’s skepticism that one of the platform’s most outspoken users will succeed in his takeover attempt.Musk, 50, announced the proposed deal in a filing with the U.S. Securities and Exchange Commission on Thursday, after turning down the chance to take a board seat at the company. Musk, who also controls Tesla Inc., first disclosed a stake of about 9% on April 4, making him the largest individual investor. Tesla shares fell about 3% on concern that the attempt to acquire Twitter will be a distraction for Musk.

U.S. Dollar Vs. Commodities: Correlation Confusion

  • The US Dollar Index notched a very strong April amid turmoil in Europe and Asia
  • Traditional asset class relationships have bucked trends in 2022
  • Any pullback in commodities is likely a buying opportunity as the year progresses

The US dollar had one of its best months of the last decade in April. The trade-weighted dollar index measures the greenback versus six major currencies. The euro is the biggest driver, making up 58% of the ICE futures US Dollar Index (DXY). The yenBritish pound, and Canadian dollar are other components. Traders can easily play the USD via the popular Invesco DB US Dollar Index Bullish ETF (NYSE:UUP).

USD Surges in 2022 Amid A Volatile Macro Backdrop

Our Global Cross Asset Market Monitor report sent each Monday morning reviews where the macro landscape stands before a busy week. With the DXY hitting its highest level since December 2002 recently, investors are clearly bracing for relative strength in the US currency. The Euro area continues to endure skyrocketing producer and consumer prices while Japan faces its own issues with supply constraints related to China’s zero-COVID lockdown measures. The relative bright spot is the CADUSD – the Loonie is still more than 10% above its 2016 and 2020 lows vs the USD