News from NAR. Existing home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, were at a seasonally adjusted annual rate of 5.66 million units in May, down 2.2 percent from an upwardly revised surge of 5.79 million units in April.
My view. The housing sector remains in trouble. Why?
There is a huge number of unsold homes -- 8.3 months supply. This figure is down from the 9.7 months supply at the beginning of the year.
It will take a long time for this huge inventory to decline to a normal 4 months supply. Why build new homes when there is still a huge number of them for sale?
This sector will continue to be a drag for the economy and could be the main cause for a double dip.
George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked Top Market Timer in 2009 and 2010 by Timer Digest
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