Dip in June resales likely will prove temporary.
The National Association of Realtors reported that sales of existing dwellings retreated by 0.8% to a seasonally adjusted annual rate of 4.77 million in June the slowest selling pace since last November. Recent sharp gyrations in pending home sales figures up 8.2% in May after a 11.3% dive in April left us unusually insecure about our call this month. Looking at the detail of this morning's report, the reported dip was entirely attributable to 7.0% decline in condo/coop purchases to 530,000. Sales of traditional one-family dwellings were unchanged at 4.24 million 3.8% below the 4.41-million year-to-date average heading into the June report. The regional figures were decidedly mixed. Resales edged 10,000 higher in both the Midwest and the South to 1.04 million and 1.86 million, respectively. However, purchases in the Northeast fell by 40,000 to 730,000, while those in the West contracted by 20,000 to 1.14 million. Turning briefly at the supply side, the stock of unsold homes on the market rose by 3.3% to an eight-month high of 3.765 million. The reported movements in sales and the number of unsold homes boosted the closely followed months' supply inventory gauge by 0.4 to 9.5 the highest reading since last November. Looking ahead, anecdotal reports suggest that the number of existing dwellings going to contract rose for a second straight month in June, suggesting that this monring's dip in resales will be reversed in July.
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