Existing Home Sales soared to a SAAR of 5.49 million in June, the highest since early 2007 while median home prices reached an all-time high.
The odd thing about the existing home sales report from the National Association of Realtors (NAR) is that the growth in existing home sales is outpacing mortgage purchase applications.
And existing home sales are outpacing average wage growth as well.
Median prices for existing home sales are at an all-time high, despite stagnant wage growth and mortgage purchase applications.
How do you spell investors? M-O-N-E-Y!
The US Dollar Spot weakened rather dramatically today.
Meanwhile, the US Treasury 10 year yield dropped as well.
Stayed hedged, my friends.
Stagnant wage growth (US Real Average Weekly Earnings YoY rose only 1.8% in June) is a good reason why June housing starts are up 10% … because 5+ unit starts were up 29%. 1 unit starts were actually down in June by almost 1%.
Here is a chart of 5+ unit starts compared with average wage growth.
1 unit (single family detached) housing starts fell almost 1% in June and remain depressed relative to the last decade’s activity.
On the permit side, multi-family permits rose the most since 1986.
Apartment living is the newest rage thanks to income stagnation.
It’s hip to be … an apartment dweller!