The National Association of REALTORS® reported on Wednesday that Existing Home Sales in April fell 2.3% from March to an annual rate of 5.57 million units. This was below the 5.65 million expected. The sales slide was mainly due to low inventories of homes for sale. Inventories are running at a 4.2 month supply, below the six-month supply that is seen as normal. The median sales price rose 6%, marking 62 straight months of price increases.
Housing prices continued to rise in the first quarter of 2017 and from February to March, due in part to limited inventories. The Federal Housing Finance Agency reports that home prices rose 0.6% in March from February and were up 6% from the first quarter of 2016 to the first quarter of 2017. The Home Price Index is calculated using home sales information from mortgages sold to, or guaranteed by, Freddie Mac and Fannie Mae.
No. 2 home improvement chain Lowe's missed on both revenues and earnings per share, which is in stark contrast to rival Home Depot's impressive earnings numbers last week. Lowe's has been trying to cater to the do-it-yourself customer, as opposed to rival Home Depot's focus on high-spending general contractors, which has helped to benefit more from the solid housing market. Shares of Lowe's were down 4% in today's trading session.
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