Yesterday's new home sales report showed less strength than expected
while today's existing home sales results are outright disappointing.
Sales fell 2.5 percent in April to an annualized rate of 5.460 million
which falls below Econoday's low estimate.
The decline in sales
came despite a sizable increase in supply on the market, at 1.800
million for a monthly gain of 9.8 percent though the year-on-year rate
remains squarely in the negative column at minus 6.3 percent. On a sales
basis, supply rose to 4.0 months from 3.5 months.
The median
price for a resale rose 3.2 percent in the month to $257,900 which no
doubt held down the month's sales. But the year-on-year rate for the
median, in contrast to FHFA or Case-Shiller data which are near 7
percent, is a more moderate 5.3 percent.
All regions were weak in
the month especially the Northeast where sales fell 4.4 percent. And
only one region, the South, is in the year-on-year plus column and at
only 2.2 percent.
Housing got off to a slow start this year and
the first indications on the second quarter are not pointing to any
acceleration. Housing, like consumer spending, has been unexpectedly
flat.
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