U.S. new home sales fell marginally in June but the pace was much higher than expected due to +50k of revisions over the past three months. Economists were surprised by the report and said it may be a tentative sign of stabilization.
Some Cheif Strategists suggest that it "paints a brighter picture (than previously portrayed). We'll see.....I can't believe that this is more than just a blip. We'll see....time will tell....the proof will be in following economic data results.
Sales fell 0.6% to an annual pace of 530k sales in June's U.S. Census Bureau report on Friday. April's new home sales were revised up to 542k from a previously reported 525k, while May's 2.5% decline to 512k was revised to a 1.7% decline to 533k. Paul Ashworth, senior U.S. economist at Capital Economics, called the reduction of inventories to a 10-month supply "encouraging," but noted that level "remains well above normal and will continue to put downward pressure on prices for some time yet."
One encouraging sign was that the median sale price of new houses sold in June was $230,900, up from May's revised median of $227,700. I don't know what to think....I just hear that the foreclosures are up 121%, but then we hear all of this other stuff. So which data is it? Foreclosures up or economic revisions are suggestion a stabilized economy. Which one?
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