Existing Home Sales Disappoint

This morning the monthly Existing Home Sales numbers were released and they were disappointing. We were expecting a 5% – 6% increase, instead we got -2.2% (annual rate: 5.66M). And immediately the talk of a double dip recession heated up.

With home sales figures being somewhat inflated by the government credit program, what does this really mean for the housing market in the US?

This and the one-day love affair with the Chinese yuan announcement has led to overall dollar weakness in the market. Watching the EUR/USD right now is like watching to 90-year old guys try to fight in a boxing ring. Who’s going to drop first?

Median home prices basically kept up with inflation—increased 2.7% from May 2009—by climbing from $174,800 to $179,600.

At the current sales pace, it will take 8.3 months to sell the current supply of homes on the market (verses 8.4 months from April’s figures). And raw unsold inventory is 1.1% higher than last year. But, I’ve also read reports of foreclosed homes being kept off the market by banks. Could just be speculation, but if this is true, what’s the real supply number?