Signing of contracts to buy a home in June unexpectedly fell 1.4% m/o/m vs an estimated .3% increase and May’s increase was revised lower. The y/o/y gain is still up by 8.4%. Only the West saw an increase in sales. The NAR again is claiming that it’s the reduction in the amount of homes for sale rather than soft demand that is causing the lull in sales. NAR said “we’ve been seeing a steady decline in the level of housing inventory, which is most pronounced in the lower price ranges popular with 1st time buyers and investors.” Bottom line, while the NAR, talking its book, says that if only we had more inventory sales would be booming, it’s not that simple. Housing is bottoming yes but the recovery will still be drawn out.
