Manufacturing Improves. Existing Home Sales up.
Chicago Federal Reserve National Activity Index
– Index level +0.21. Previous was -0.32
PMI Manufacturing Index Flash (June 2014)
– Index level 57.5. Previous was 56.2
This is a survey index produced by Markit – an international data gathering company.
These two releases indicate an improving manufacturing sector.
Existing Home Sales (May 2014)
– Existing Home Sales (seasonally adjusted, annualized) 4,890,000. Previous was 4.660,000
– Existing Home Sales Year/Year -5.0%
Supply is 5.6 months. The median existing home price was +5.1% year-on-year. Distressed sales were 11% of total down from 18% a year ago. Only 27% of buyers were first-time buyers.
We are seeing several things: fewer distressed sales, potential demand for more supply in the near-term but demand limited by the inability of younger people to afford to purchase. The last item of the greatest long-term concern.