Update Economic USA Housing

Housing sales of previously owned houses fell 2.3% in April to 5.57 million units, but this should not be such a surprise since the previous month reached a 10 year high. Gains over the past 12 months might be more indicative of the continuing improvement in housing with a gain of 1.6%. There is an increasing shortage of houses reflected in the most recent supply level at 4.2 months; a normal market is 6 months. The shortage is pushing median prices up and they have now reached $244,800. Given the longer trend to the upside we believe housing is still improving.