Homebuilders boosted by strong sales report

Homebuilders (ITB +1%), (XHB +0.7%) are on the rise early after existing home sales rise 4.9% to a seasonally-adjusted rate of 4.89M in May, ahead of expectations for 4.75M.

The 4.9% monthly gain was the fastest rise since August 2011, but the 4.89M pace is 5% lower than a year ago.

The NAR's Larry Yun notes slower price growth thanks to rising inventory along with a downtick in mortgage rates as boosting business.

Total housing inventory of 2.28M homes for sale is a 5.6 month supply at the current sales pace, down from 5.7 months in April, but 6% higher than a year ago.

The median home price of $213.4K is 5.1% higher than a year ago. Distressed home sales of 11% falls from 18%.

The percent of first-time homebuyers continues to disappoint, down to 27% in May from 29% in April and 29% a year before that.

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Comments (6)
  • bbro
    , contributor
    Comments (11227) | Send Message
    Existing Home Inventory to Total Nonfarm Payroll employment is 1.65%...worry when it gets above 2%
    23 Jun 2014, 10:40 AM Reply Like
  • june1234
    , contributor
    Comments (4406) | Send Message
    As prices have risen expect more and more people who've been sitting 7 yrs or so underwater to list their homes, driving prices down
    23 Jun 2014, 11:08 AM Reply Like
  • rubber duck
    , contributor
    Comments (194) | Send Message
    The growth comes from top tier housing, particularly $1M+, housing for average joe is still treading the bottom.
    23 Jun 2014, 11:22 AM Reply Like
  • StockBet.com
    , contributor
    Comments (249) | Send Message
    There are many parts of the U.S. where home prices still need to revert to the mean.
    23 Jun 2014, 11:38 AM Reply Like
  • Michael Clark
    , contributor
    Comments (11707) | Send Message
    Zero Hedge breaks down the GAIN. Only in the $700,000 to $2Million houses were there gains. Everything else was down or flat. Not really what the headlines say.
    23 Jun 2014, 01:58 PM Reply Like
  • umuddafadda
    , contributor
    Comments (62) | Send Message
    one need only to take car out for spin in one's own neighborhood.....its still quasi-bleek
    23 Jun 2014, 02:21 PM Reply Like
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