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Northeast, Midwest See Best Gains in Existing Home Sales in June

Is This the Right Time to Buy Homebuilders?

(Continued from Prior Part)

Strong gains in June

Existing home sales are currently at 5.49 million compared to 5.01 million a year ago. This represents a whopping 9.58% increase year-over-year. The consensus forecast was 5.4 million. Such robust growth over a one-year period suggests a spurt in economic activity and a more optimistic consumer than last year’s.

A monthly comparison shows that home sales increased by 3.2% in June 2015 compared to 4.52% in May. Optimistic buyers have come back to the market with vigor, leading to the strongest two months of sales since early 2007.

Lagging indicator

The existing home sales survey tracks nationwide prices related to...