Existing Home Sales Continued to Show Weakness

From Wall Street Journal

The housing sector continues to stumble with April existing home sales coming in a little below expectations at a 5.05 million annual unit rate, down 0.8 percent in the month with the year-on-year rate moving into the negative double digits at 12.9 percent. Supply on the market ballooned to 9.2 months at the current sales rate vs 8.3 months in March.

But price readings are positive in the report with both the median and average moving higher, up 2.4 percent on the median to $163,700 with the average at $214,600 for a 3.5 percent gain. High supply however won't be supporting further increases for prices which however are very affordable as mortgage rates are favorable. Yet the housing sector just can't get going, weighed down by distressed sales and difficult credit conditions.