The housing market, at least on paper, has come all the way back as median prices increased 4.7% in May from April to $239,700. Of course, that’s misleading, but the housing market is a rare solid part of the economy. The 5.53 million unit annual pace of sales was actually less than expected but still the best since February 2007.
Regionally
- Northeast +4.1%
- South +4.6%
- West +5.4%
- Midwest -6.5%
I’m worried prices have climbed too high too fast a result of short supply, which is now only 2.15 million, and only represents 4.7 months of current demand- far below historic norms. Coupled with strong earnings from Pulte this morning, and Lennar yesterday, it’s clear housing is our refuge.