Real Estate Remains Weak

A rise in signed contracts to buy homes today could precede more of them broken in the future. Be wary of easy headline inferences. The bounce in real home prices since 2009 remains nothing more than counter trend rally within a secular downtrend that begin in 2005. The longer prices consolidates without meaningful gains, the harder the lower magnet pulls.

U.S. Median Home Price (MHP) And MHP to Gold Ratio


Headline: Contracts to buy homes rose sharply in May

The number of people who signed contracts to buy homes rose sharply in May. But the influx of spring buyers wasn't enough to signal a rebound in the struggling housing market.

The National Association of Realtors said Wednesday that its index of sales agreements for previously occupied homes rose 8.2 percent last month, to a reading of 88.8. The increase followed April's seven-month low of 82.1

Source: finance.yahoo.com