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Existing-home sales slowed 5.4% in June, declining to an annualized pace of 4.37 million units. This is the slowest pace since last October. Compared with the first quarter of this year, sales are down by an annualized 2.6%. Nonetheless, the second quarter pace of sales is the second fastest in the last two years.


The decline in June sales was broad-based across regions, with the Northeast faring the worst and the Midwest faring the best.

Inventory of existing homes rose slightly in June, reaching 6.6 months, up from 6.4 the previous month. The increase was driven by a drop in demand. Listings of homes for sale fell as well, by 3.2%, likely a result of fewer distressed listings.

The average median home price continued to appreciate in June as a result of a declining share of distressed sales. The median home price increased 0.9% over the previous month in June to $189,400. This level is 7.9% above year-ago levels. The share of distressed sales dropped to 25% in June from 30% the previous year.

Read the NAR release.

Existing home prices fell in October, according to the S&P’s Case-Shiller index. The 10- and 20-city indices declined 1.1% and 1.2% respectively. This marks the second consecutive month of price declines.


Despite the fall, home prices improved on a year-ago basis. The 10-city index is down 3% from one year ago, an improvement from the 3.2% reported last month.


Of the 20 metropolitan areas surveyed, only one, Phoenix, reported appreciation in home prices, a 0.3% increase in prices. Atlanta and Detroit were hit hardest, seeing monthly declines of 5.0% and 3.3% respectively. Only two metro areas, Detroit and Washington, have prices above year ago level seeing appreciation of 2.5% and 1.3% respectively. Las Vegas has been hit the hardest this year with prices remaining 8.5% below their level one year ago.

Read the report.

Producer prices fell for the second consecutive month in November, dropping 0.8% over the month. A sharp drop in energy prices more than offset a modest rise in the prices of core goods and food. Finished core goods saw prices appreciate just 0.1% in November, rebounding from their 0.2% decline the previous month.



Prices for finished energy products fell 4.6% in November, the sharpest drop in over three years. The decline was driven almost entirely by a 10% plunge in gasoline prices. Food prices rose 1.3% in November, up from a moderate 0.4% the previous month.

Producer prices are now only 1.4% above year-ago levels, considerably weaker than the 2.3% reported last month. Producer price appreciation has slowed notably from the rapid pace seen over the summer and will likely drag on consumer prices in coming months.

Read the BLS report.

The service sector growth cooled in March, falling to the lowest level since August. The ISM non-manufacturing index fell to 54.4 in March from 56.0 the previous month. Despite the decline, services continue to outperform the manufacturing sector, which declined to 51.3 in March. Any reading over 50 indicated industry expansion.



The details of March’s report declined across the board except for supplier deliveries and backlogs. The employment index dropped 3.9 points to 53.3. Overall business activity edged lower to 56.5 index points, losing 0.4 points from the previous month.

Despite the overall decline in March, the indexes remained above the neutral threshold of 50, signaling an expansion, albeit at a slower rate then the previous month.

A copy of the press release can be found here.

New home sales finished 2011 on a negative note, with December’s pace of sales falling 2.2% from November to an annualized pace of 307,000 units. This pace is 7.3% below the pace seen in December 2010. The supply of new homes remains well balanced as prices continue to decline.


The decline was led by the South, where the pace of new home sales fell 10.1%. This decline may have been, in part, a correction from November’s 14.8% growth in November. The only other region to slow was the Midwest, falling 3.7%. The Northeast saw sales jump by 46.7%, however, this increase had little effect on national levels, as the Northeast represents only 7% of national sales. Sales in the West increased 9%.

The supply inched up in December to 6.1 months, but remains below the 6-month average of 6.4 months supply. Prices continued to fall in December, with the median home price falling 7% from November to $201,100. This price level is 17% below the median price seen one year ago.

Read the report.

Existing home sales fell by 0.9% to 4.59 million annual units in February. The decline is due to a strong upward revision in January’s sales, as February’s pace is stronger than January’s initially reported pace. January’s pace of home sales was revised up from 4.57 million units per year to 4.63 million. As a result, despite February’s slight decline, sales are running 4% faster in the three months ending February than the three months ending in November.


Months’ supply of homes on the market increased to 6.4 million however part of this increase was due to increased listings. The median house price appreciated in February by 0.3% versus a year ago to $156,600. After adjusting for seasonal factors the appreciation of prices was 1.6% from the previous month.

Read the report.

The U.S. Census Bureau and the U.S. Bureau of Economic Analysis announced that the Trade Deficit fell in May to $48.7 billion, down from $50.6 billion in April.



Total May exports were $183.1 billion and imports were $231.8 billion. May exports were $0.4 billion more than April exports of $182.7 billion. May imports were $1.6 billion less than April imports of $233.3 billion. Cheaper oil from abroad helped to narrow the trade deficit.

Read the release.

Retail sales declined 0.5% in June, the third consecutive monthly decline. Excluding autos, sales fell 0.4% as declines were broad-based in June. Revisions to growth in May were minor, but April sales were revised lower to -0.5% from the previously revised -0.2% reported last month.

Falling gasoline prices played a part in June’s decline as gasoline stations sales led the fall. Building supply stores and sporting goods and hobby stores also experienced larger declines.

The only bright spot to the report was nonstore retailers, but their sales were small and also lagged recent trends.

While retail sales remain above year-ago levels, the growth slowed to 3.8%, the first time growth has been below 4% since August 2010.

Read the report.