Live Forex News | Real Time Forex Trading New | FX Trader Magazine: "After all of the whoo hoo'ing over the strong existing home sales report on Wednesday, U.S. new home sales poured cold water on the festive tones. New home sales unexpectedly fell in June and not only that, the decline was pretty big at 6.8% and the level of 482,000 units annualized is the lowest since November. In fact, this is the 2nd decline in a row, which has not been seen in one year. And if that wasn't enough, the cut went a little deeper as March, April and May's sales were revised downward. All regions saw fewer new homes sold, except in the Northeast. Inventories rose for the 4th straight month, but with fewer sales, the months' supply rose to 5.4, still within the normal range but the highest since November. Median prices fell from year-ago levels for the 2nd month in a row, unlike its counterpart in the resale market.
The headline decline comes as a surprise given how upbeat homebuilders are NAHB housing index at the highest level in a nearly a decade, various builders reporting growth in new orders, and strong demand in the existing market combined with still-tight supplies. But, new home sales are a small part of total sales, there were 5½ mln of existing homes sold in June, versus under ½ million of new. This doesn't change the picture that housing is supporting overall economic growth. And despite all of the ups and downs in new homes sold, the trend is still heading in the right direction, says BMO Economics."
'via Blog this'
No comments:
Post a Comment