Alarm! US Existing Home Sales Fall For A Sixth Month (-19% YoY), Median Price Growth Of EHS Falls To +10.55% YoY As M2 Money Growth Slows – Confounded Interest – Anthony B. Sanders

In honor of Wolfgang Peterson who passed away yesterday, the Director of the classic WWII movie “Das Boot!” …. ALARM!

Sales of previously owned US homes fell for a sixth straight month in July in the latest indication of how high borrowing costs and waning demand are propelling the housing market’s rapid decline. In fact, existing home sales fell -19% YoY in August.

Contract closings fell 5.9% in July to an annualized 4.81 million, the weakest since May 2020, figures from the National Association of Realtors showed Thursday. The median estimate called for 4.86 million in a Bloomberg survey of economists. Sales fell 22.4% from a year ago on an unadjusted basis.

The nearly 26% decline in previously owned home sales since January marks the steepest six-month plunge in records back to 1999 and underscores a housing market that’s reeling from elevated mortgage rates and prices. The industry is also experiencing a slowdown in construction, and more buyers are backing away from deals. 

Weaker demand has led to a pickup in inventory, which may help to cool home prices in coming months.

The median price of existing home sales growth fell to 10.55% YoY as M2 Money growth slows.

Its all about The Federal Reserve.