US May Existing Home Sales Dn 0.3% To 5.99 Mln Rate
Last update: 6/25/2007 10:00:03 AM
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May Existing Home Sales May Apr ! Consensus: !
Total Sales: 5.99M 6.01Mr ! 5.99M !
% Change: -0.3% -2.3%r ! Actual: !
Months Supply: 8.9 8.4 ! 5.99M !
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By Jeff Bater
Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--Existing-home sales dipped during May to their lowest level in nearly four years, while inventories climbed and prices fell a 10th straight time.
Home resales fell to a 5.99 million annual rate, a 0.3% decrease from April's revised 6.01 million annual pace, the National Association of Realtors said Monday. April's rate was originally estimated at 5.99 million.
The median home price was $223,700 in May, down 2.1% from $228,500 in May 2006. The median price in April this year was $219,800. The 2.1% drop marked the 10th consecutive year-over-year price decline.
The May resales level of 5.99 million was in line with Wall Street expectations. It was the lowest pace of demand since 5.94 million in June 2003.
NAR economist Lawrence Yun said would-be buyers appear to be waiting for more signs of stability. "The market is underperforming when you consider positive fundamentals such as the strength of job creation, economic growth, favorable mortgage interest rates and flat home prices," Yun said.
Some private analysts think the housing slump will keep restraining the economy. Builders broke ground in May at a lower rate than the month before, confirming their loss of confidence in a market bloated with inventory. The government reported last week May housing starts fell 2.1%, the first drop in four months. The lifeless housing market has reduced economic growth for six consecutive quarters, and a bulging supply of unsold homes suggest further drag. Another thorn in the side of the industry is the subprime loan market mess. Lenders have tightened credit - and might do so further amid evidence that the outlook for securities backed by the riskiest subprime loans made last year has deteriorated.
The average 30-year mortgage rate was 6.26% in May, up from 6.18% in April, according to Freddie Mac (FRE).
Inventories of homes rose 5.0% at the end of May to 4.43 million available for sale, which represented an 8.9-month supply at the current sales pace. There was an 8.4-month supply at the end of April, which was unrevised from a previous estimate.
Regionally, existing-home sales were mixed. Sales rose 0.7% in the Midwest and 5.8% in the Northeast. Demand fell 0.8% in the West and 3.4% in the South.
-By Jeff Bater, Dow Jones Newswires; 202 862 9249; jeff.bater@dowjones.com
(END) Dow Jones Newswires
June 25, 2007 10:00 ET (14:00 GMT) |
