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EXISTING HOME SALES

When figuring out the economic state of a country, the housing market can be a big indication. A bad market for existing home sales can indicate that the countries currency is devalued, making it a poor investment choice for forex trading.

 

FX Trading Significance

Real estate is one of the largest indicators of a nation’s economy. Almost 80% of houses are existing homes, with the others being newly constructed. Existing Home Sales tracks the number of these previously-owned, single family houses being sold.
 
New Home Sales provides data on homes that have never been lived in or are currently being built. Sales of existing homes often indicate more economic spending, as people tend to buy bigger houses that require more furniture, appliances, and decorating. The sale of existing homes points toward economic growth, which forex brokers relate to currency strength.

Existing Home Sales Reporting

The National Association of Realtors releases this information on the 25th of each month with statistical data from the previous month. The Existing Home Sales Report is believed to be a fairly accurate measure of the state of the housing market.
 
Mortgages rates are a huge factor in the sale of homes, although it is not uncommon for a delayed shift to occur months after the change in rates. Also, some other factors create a demand for housing that is not easily accounted for, such as after a recession, when people feel it is safer to sell and buy houses. Identifying these factors can help when investing in FX trading.

Using EHS Data with your Forex Broker

Monthly statistics can be misleading, as weather differences can create shifts in the market between seasons, but checking yearly factors will give FX brokers a leg-up over the forex trading competition for finding the best investments.