U.S. June Existing Home Sales - Weakness extending
June existing home sales with a 5.4% decline to 3.89m are weaker than expected but the data is consistent with negative signals from May pending home sales and most other recent signals on housing demand. This is the fourth straight decline with February’s sharp rise now fully erased.
Existing home sales remain marginally above 2023 lows as did May new home sales despite a sharp drop in May. Pending home sales however have fallen below their lows seen at the height of the pandemic. This hints further declines in existing home sales are likely, though should the Fed start to move rates lower, housing demand should find some support.
Sales fell in each of the four regions. The median price increased by 2.3% in the month but the gain is seasonal and yr/yr growth saw a significant dip to 4.1% from 5.2% with a recent uptrend appearing to be peaking.
