Home Sales Reflect Shutdown and Reopening
On Monday, existing home sales (which have historically represented 85% to 90% of the total housing market) dropped -9.7% during the month of May to an annualized unit pace of 3.91 million, the weakest since October 2010. The sales pace has now fallen for three consecutive months after logging a 13-year high of 5.76 million in February, and is down -26.6% year-over-year. Since existing home sales are tallied at closing, the anemic May data is actually reflective of the March/April period when most Americans were shuttered in their homes. Going forward, with the economy having since reopened, some improvement is certain.