The National Association of REALTORS® reports that existing home sales in June fell 1.7% from May to an annual rate of 5.27M units versus the 5.30M expected. The decline is due in part to the continued shortage of homes for sale on the market. Sales fell 2.2% from June 2018. Modest gains were seen in the Northeast and Midwest with declines in the South and West. The median existing home-price for all housing types hit an all-time high of $285,700, up 4.3% from June 2018. Inventories are running below the normal 6-month level, currently at 4.4-months.
Due in part to solid US economy, a strong job market and modestly rising wages, the nation’s median home price increased for the third consecutive month, up 3.4% in June from a year earlier, according to Redfin. U.S. home prices hit a median price of $321,200 last month. In addition, only 6 of the 85 largest metro areas saw an annual decline in their median sale price. Redfin chief economist Daryl Fairweather said, "Economic growth is a double-edged sword for the housing market. The increase in demand for low- and moderately priced starter homes is pushing up prices for the most affordable segment of the market."
Strong earnings are lifting US stocks today while weighing on bond with both prices and yields near unchanged. Dow components Coca-Cola and United technologies along with Lockheed Martin, Hasbro and Pulte Homes are pushing stocks higher and capping any price gains for bonds. In the US debt ceiling news, it looks like a two-year deal has been reached in Congress. This morning, the International Monetary Fund cut its global growth forecast but upped the numbers for the US as the economy here in the states continues to be a bright light among world economies.
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