In a note to investors today, a well-regarded strategist on the equity sales desk at a major sell side firm put up the following two Bloomberg charts next to each other.The two charts reflect different time frames but are from related data sets. The first chart is a long-time series dating from 1963, the seasonally-adjusted annualize rate of new home sales. You can see home sales falling off a cliff into this past recession.
The second chart is a three-day chart of the ITB, the iShares home construction ETF which consists mostly of home builder shares. The home builders are crushing today as new home sales in June came in up over 23% month-over-month. Of course, May was a record low, the slowest ever in 46 years of data. (more)
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