Home Sales Update
MORE “NEW NORMAL” NEWS …
Days after a stunning decline in new home sales was reported, existing home sales also took it on the chin – declining 1.1 percent from the previous month. That’s the biggest miss so far in 2014 – and a sign the so-called “housing recovery” is continuing to limp along in fits and starts.
The good news? The median home price is up 4.3 percent year-to-year … although unfortunately that’s the slowest rate of growth since March 2012.
The National Association of Realtors (NAR) predicts existing home sales will decline from 5.1 million in 2012 to 4.9 million this year.
The NAR’s chief economist Lawrence Yun – a South Carolina native – said a combination of supply shortages, flat wages and tight credit were “deterring a higher number of potential buyers from fully taking advantage of lower interest rates.”
Last week new home sales data was released – showing a 20 percent month-to-month drop (from 504,000 to 406,000 units). Of course data from May, April and March was revised downward (by a total of nearly 80,000 units).
Wanna see what that looks like?
(Click to enlarge)
And there you have yet another illustration of the “New Normal” (a.k.a. what happens when chronic government intervention suppresses private sector growth).