Housing is the one sector of the economy not showing any life. Existing
home sales managed only a 5.340 million annualized rate in July, missing
Econoday's consensus of 5.420 million for a 0.7 percent dip from June
and the fourth decline in a row. This is the lowest rate in 2-1/2 years.
Year-on-year, resales are down 1.5 percent.
Both single-family
homes and condos show similar weakness, the former down 0.2 percent on
the month and down 1.2 percent on the year at a 4.750 million rate.
Condo resales, at a 590,000 rate, fell 4.8 percent on the month and are
down 3.3 percent on the year. All regions show similar declines on the
year with the West posting the only monthly gain in July, at 4.4
percent.
Supply doesn't offer any relief either, down 0.5 percent
to 1.920 million total resales on the market. Relative to sales, supply
is unchanged at 4.3 months. And prices fell in the month, down a
monthly 1.5 percent to $269,600 for a 4.5 percent yearly gain that
stands in contrast to the yearly decline in sales in a comparison that
doesn't point to price traction ahead.
Rising mortgage rates
aren't a plus for housing and neither are construction constraints for
labor and materials that are slowing the new home market where weakness
bleeds into resales. Third-quarter GDP looks to be very solid but
apparently won't be getting much lift from residential investment.
No comments:
Post a Comment