- 5.4% decline in the month
- Prior was 5.41m
- Inventory 3.0 months vs 2.6 months prior
- Median prices $416,00 vs $407.6K prior
- Prices y/y +13.4% vs +14.8% prior
The numbers represent closings, which were likely contracts signed in April/May. This is the last of the main housing indicators this week.
On the housing front, some news that caught my attention today was from lot-development company Forestar Group. They lowered guidance to 17,000 lots this year from between 19,500 and 20,000 lots. That's a strong signal about a slower pace of home construction. We'll get earnings from the largest US home builder -- D.R. Horton -- tomorrow.
"Falling housing affordability continues to take a toll on potential home buyers," said NAR Chief Economist Lawrence Yun. "Both mortgage rates and home prices have risen too sharply in a short span of time."
"Finally, there are more homes on the market," Yun added. "Interestingly though, the record-low pace of days on market implies a fuzzier picture on home prices. Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers."
