US Home Sales Up in May on Imporving Supply
$DIA, $SPY, $QQQ, $VXX
Economists say US homebuilders will need to ramp up construction of new homes to meet the pent-up demand.
US home resales rose in May to a more than 9-year high as improving supply increased choices for buyers, suggesting the economy remains on solid footing despite a sharp slowdown in job growth last month.
The National Association of Realtors said on Wednesday existing home sales increased 1.8% to an annual rate of 5.53-M units last month, the highest mark since February 2007.
April’s sales pace was revised down to 5.43-M units from the previously reported 5.45-M units. Economists had forecast sales rising 1.1% to a 5.54-M-unit pace in May.
Sales were up 4.5% from a year ago.
US financial markets were little moved by the report as investors cautiously awaited the outcome of Britain’s referendum on EU membership Thursday.
With inventory tight, the median house price soared 4.7% from a year ago to a record $239,700 last month.
The rise in house prices is outstripping wage gains making home purchasing expensive for 1st-time buyers, and is boosting equity for homeowners and enticing some to put their homes on the market.
Last month, the number of 1st-time buyers fell to 30% from 32% in both April and a year ago.
Wednesday, the major US stocks indexes finished at: DJIA -48.90 at 17780.83, NAS Comp -10.44 at 4833.32, S&P 500-3.45 at 2085.45
Volume: Trade was light with about 804-M/shares exchanged on the NYSE
- NAS Comp -3.5% YTD
- Russell 2000 +1.1% YTD
- DJIA +2.0% YTD
- S&P 500 +2.0% YTD
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