Market Commentary

Housing

home sales

Pending home sales in May surged. These are contracts signed, but not yet closed, to buy an existing home. The rise was 44.3%, the highest level ever recorded since the National Association of Realtors has been tracking these statistics. However, before we get too excited contract signings were down 5.1% from a year ago. Still, every region in the U.S. saw a monthly increase led by the west which was up 56%.

The latest new home sales report was also very strong reported a week ago.

This means that consumers are eager to re-enter the housing market. You may wonder why with the unemployment rate being so high.  The job losses related to the coronavirus have, by far, affected lower-paid workers less likely to be a home buyer.

The urge to chase the American dream of homeownership is still very strong.