- Home resales in US rose in June for a 3rd consecutive month, spurred by tax incentives, lower borrowing costs and foreclosure-driven declines in prices.
- Purchases climbed 3.6% to an annual rate of 4.89 million, stronger than forecast and the highest level since October.
- Median prices still fell –15% compared to last year but improved on a MoM basis.
- Economist had forecasted existing sales to rise to 4.85 million from a previously reported 3.770 million in May.
“We have finally bottomed out,” said Stuart Hoffman, chief economist at PNC Financial Services Group in Pittsburgh. Improved affordability “is stalemating the drag from higher unemployment.” Hoffman forecast sales would rise to a 4.9 million pace.
- Inventory levels still remain elevated, and the current pace of sales would take more than nine months to work through.
- Distressed sales retreated to just 31% of total activity, the lowest reading since NAR began reporting the statistic late last year.
Source: Bloomberg, Wells Fargo Economics Group & Barron's
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