Existing home sales came out today for April and they came in down .8%, while year over year, sales were down 12.9%. Supply on market rose to 9.2 months from March's 8.3 months. Very disappointing, to say the least, but not totally unexpected.
The one bright side of the report was prices. The median rose 2.4% to $163,700, while the average rose 3.4% to $214,600.
In looking at these numbers it's probable that the higher inventories will put downward pressure on prices in the coming months. Even though mortgage rates are at all time lows with credit conditions still being very tight the housing market will continue to feel the pressure.
Par for the course until we see a loosening of credit and the jobs market and economy improve(I know, I'm a broken record on this).
The other positive news was that although jobless claims are still above 400,000, they did come down this week. Traditionally the summer months do gain some momentum so it will be interesting to see how this summer compares to last year. In the Burbank area sales volume did slow down considerably last year from September to January.
New home sales will come out on Tuesday.
I was glad to see they reported the facts without trying to put a glossy/rosy glow to it. Hopefully the jobless claims will continue to decline for months in a row instead of down one month and back up the next.
Sue of Robin and Sue