THE BASIS POINT

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.

 

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