US Existing Home Sales Declined -2.8% YoY In May As Leading Economic Index Falls -2.0% Over Past 6 Months

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by confoundedinterest17

I am no forune teller, but this doesn’t look to good for old Joe (Biden).

Existing home sales fell -2.8% YoY in May.

US existing home sales fell for the third straight month in May (-0.7% MoM vs -1.0% exp). This left home sales down 2.8% YoY (YoY sales have not increased since July 2021)…

Source: Bloomberg

The total home sales SAAR is push back towards COVID lockdown lows once again at 4.1mm, but prices accelerated to a new record high…

Source: Bloomberg

“Home prices reaching new highs are creating a wider divide between those owning properties and those who wish to be first-time buyers,” NAR Chief Economist Lawrence Yun said in a statement.

“Eventually, more inventory will help boost home sales and tame home price gains in the upcoming months.”

And given that mortgage rates remain stubbornly above 7%, existing home sales show no signs of improving anytime soon…

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Source: Bloomberg

The supply of homes on the market increased 18.5% from the same month last year to 1.28 million, but it’s still well below the level seen before the pandemic when mortgage rates were much lower.

Source: Bloomberg

About 67% of the homes sold were on the market for less than a month in May, roughly flat from the prior month, while 30% sold above the list price. Properties remained on the market for 24 days on average in May, compared with 26 days in April, NAR’s report said.

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The Conference Board Leading Economic Index® (LEI) for the U.S. decreased by 0.5 percent in May 2024 to 101.2 (2016=100), following a 0.6 percent decline in April. Over the six-month period between November 2023 and May 2024, the LEI fell by 2.0 percent—a smaller decrease than its 3.4 percent contraction over the previous six months.

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