MetroIntelligence Economic Update by P. DUFFY
New home sales rise 10.7 percent in May but down 5.9 percent year-on-year
Sales of new single‐family houses in May 2022 were at a seasonally adjusted annual rate of 696,000. This is 10.7 percent above the revised April rate of 629,000, but is 5.9 percent below the May 2021 estimate of 740,000. The seasonally‐adjusted estimate of new houses for sale at the end of May was 444,000. This represents a supply of
7.7 months at the current sales rate.
Final May consumer sentiment index slips to lowest level on record
The final June reading confirmed the early-June decline in consumer sentiment, settling 0.2 Index points below the preliminary reading 14.4% below May and down 41.5% year-on-year, for the lowest reading on record. About 79% of consumers expected bad times in the year ahead for business conditions, the highest since 2009. Inflation continued to be of paramount concern to consumers; 47% of consumers blamed inflation for eroding their living standards, just one point shy of the all-time high last reached during the Great Recession.
Redfin: Pending sales and Homebuyer Demand Index post large year-on-year declines
Homebuying demand pulled back further as mortgage rates reached their highest level in over 13 years. Home tours, offers and other requests for agents’ help, as measured by The Redfin Homebuyer Demand Index, posted their largest annual decline in over two years. Sellers are not holding out. The weekly share of listings with a price drop reached a new high during the four weeks ending June 19.