Sterne Agee Weighs In On May Housing Data
In a note released Monday morning, Sterne Agee analyst Jay McCanless commented on the housing sector's results for the month of May.
McCanless pointed out that 90 percent of U.S. homeownership transactions are due to existing home sales. Additionally, he noted approximately 68.5 percent of Sterne Agee's homebuilders' community exposure is in the top 25 markets; because of this, the firm's coverage focuses on these markets.
Sterne Agee May Housing Data Highlights
- Top 25 existing homes sales declined 6.2 percent year-over-year compared to 8.2 percent for the national metric.
- Of the 25 markets, 18 provide monthly pending sales. These 18 saw an average year-over-year decline of 0.3 percent (eight were positive) compared to 9.4 percent nationally.
- Gross inventory increased 12.3 percent year-over-year compared to six percent nationally.
- The University of Michigan's Consumer Sentiment Index increased from 81.9 in May to a revised 82.5 in June.
- The Conference Board's Consumer Confidence Index increased from 82.21 in May to 85.18 in June.
- Median price growth for the top 25 markets was 7.7 percent year-over-year, compared to 3.8 percent nationally.
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