June's Slumped Housing Sales Indicate Complicated Market, WSJ
New York, NY, July 24, 2018-The combination of low inventory, high interest rates and increased price tags led to a slump in existing home sales in June, according to The Wall Street Journal (WSJ) in an article called “Home Sales Extend Slump Despite Economic Strength” by Laura Kusisto and Sharon Nunn.
“Home sales slumped in the second quarter despite what was likely the strongest period for U.S. growth in years, the latest sign that the economic expansion faces headwinds…Home sales have now declined on an annual basis in five of the first six months this year, a worrying trend since housing is considered a crucial indicator of overall economic health, economists say,” the article reports.
In spite of strong job reports and corporate profits, the housing picture is not growing rosier. “Housing contributes about 15% to 18% of gross domestic product. Existing-home sales help drive other sectors of the economy,” the article continues.
Though poor inventory has long been blamed for mediocre sales, the WSJ reports that that trend may be reversing to some degree, and demand may actually be lower, as buyers are slower to purchase than in previous years.
The full article is available here.