The Atlanta Fed's macroblog provides commentary and analysis on economic topics including monetary policy, macroeconomic developments, inflation, labor economics, and financial issues.

Authors for macroblog are Dave Altig, John Robertson, and other Atlanta Fed economists and researchers.

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June 27, 2006

Existing Home Sales: Stumbling, Not Tumbling

The good and the bad, from Bloomberg:

Sales of previously owned homes in the U.S. fell less than expected in May, suggesting a gradual slowdown in the housing market...

Resales were expected to decline to an annual rate of 6.6 million from April's originally reported 6.76 million, according to the median estimate of 58 economists in a Bloomberg News survey. Forecasts ranged from 6.43 million to 6.88 million...

The supply of homes rose 5.5 percent to 3.6 million, bringing inventories up to 6.5 months' worth at the end of May.

The median price of an existing home rose 6 percent in May from a year earlier to $230,000, the Realtors group said.

The story in pictures, by region:





The commentariat in blogland was unimpressed.  The Capital Spectator says:

Yesterday's latest release of new home sales renewed talk that the much-discussed slowdown in housing has been greatly exaggerated. Don't believe it.

Michael Shedlock took note, pre-report, of rising foreclosure rates.  And Calculated Risk, armed with graphs aplenty and ever the go-to source on these matters, warns:

Existing Home Sales are a trailing indicator. The sales are reported at close of escrow, so May sales reflects agreements reached in March and April.

Usually 6 to 8 months of inventory starts causing pricing problem - and over 8 months a significant problem. Current inventory levels are now in the danger zone.

You have been warned.

June 27, 2006 in Data Releases , Housing | Permalink


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Listed below are links to blogs that reference Existing Home Sales: Stumbling, Not Tumbling :

» Existing Home Sales from TruePress
Calculated Risk and Macroblog take a look at residential real estate trends. Macroblogs headline seems to reflect what has generally happened in the market to date, Stumbling, Not Tumbling, and does not make the situation appear t... [Read More]

Tracked on Jun 28, 2006 4:12:23 PM


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