6/27: MetroIntelligence Economic Update by P. DUFFY

New home sales declined 7.8 percent in May and 3.7 percent year-on-year

New home sales dropped for the second straight month in May, this time by 7.8 percent to the lowest level since last December.  Even as mortgage rates have dropped sharply, sales were still down 3.7 percent year-on-year.   The median new home sales price fell 2.7 percent year-on-year to $308,000.  At May’s sales pace, it would take 6.4 months to sell unsold homes, up from 5.9 months in April.



Case-Shiller Index annual increase slipped to 3.5 percent in April

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 3.5% annual gain in April, down from 3.7% in the previous month. Before seasonal adjustment, the National Index posted a month-over-month increase of 0.9% in April.



June consumer confidence drops to lowest level since September 2017

After two consecutive months of improvement, consumer confidence declined in June to its lowest level since September 2017, and falling to 121.5 from 131.3 in May.  The escalation in trade and tariff tensions earlier this month appears to have shaken consumers’ confidence.