Existing Home Sales higher but supply increases too

Written May 27, 2009 at 10:03 AM EST by  

Email This Post Email This Post   Print This Post Print This Post

Existing Home sales rises to 4.68 M. +2.9% up.

Supply of homes rises to 10.2 month supply of homes vs revised 9.6 months last month.  Still high despite higher sales pace.

Median Sales price $170,200 up from 169,900

Overall, I still don’t like the supply. Suggests that the supply added is greater than the increase in the sales pace.  For a healthier market, I would like to see increased sales to absorb some of the supply.  With the current scenario, the risk is home prices continue to remain under pressure.

This should be bearish for stocks and perhaps commodities. This could lead ironicallly to some dollar buying as a result.  EURUSD is lower post the report.  GBPUSD has dipped a bit as well.

Categories: Economic Statistics  |  Tags:

No Responses to “Existing Home Sales higher but supply increases too”

Add a comment