Gold Remains Weak After March Sales Of U.S. Existing Homes Rise 1.1%
Editor's Note: Updating earlier story with more details from report.
(Kitco News) - Gold prices extended their losses slightly Monday after areport showing that March sales of previously owned U.S. homes rose by 1.1% toa seasonally adjusted and annualized pace of 5.6 million.
Consensusexpectations compiled by various news organizations called for sales to bearound 5.51 million to 5.52 million. February sales were 5.54 million.
Goldwas already sharply lower going into the report in response to a stronger U.S.dollar and 10-year U.S. Treasury yields nearing 3%, analysts said. They alsocited reduced risk aversion in other markets.
As of 10:12 a.m. EDT, Comex June gold was trading down by $14 for the day to $1,324.30 an ounce.Two minutes ahead of the report, the metal was at $1,326.
Existing-home sales grew for the secondconsecutive month in March, but lagging inventory levels and prides kept sales 1.2%below year-ago levels, said the report, released by the National Association ofRealtors.
Lawrence Yun, NAR chief economist,said home closings in March eked forward despite challenging market conditionsin most of the country.
"Robust gains last month in the Northeast and Midwest - areversal from the weather-impacted declines seen in February - helped overallsales activity rise to its strongest pace since last November at 5.72million," Yun said. "The unwelcoming news is that while the healthyeconomy is generating sustained interest in buying a home this spring, salesare lagging year-ago levels because supply is woefully low and home prices keepclimbing above what some would-be buyers can afford."
Themedian existing-home price for all housing types in March was $250,400, up5.8% from March 2017, when it was $236,600, the report said. The March priceincrease marks 73 straight months of year-over-year gains.
"Althoughthe strong job market and recent tax cuts are boosting the incomes of manyhouseholds, speedy price growth is squeezing overall affordability in severalmarkets - especially those out West," said Yun.
Totalhousing inventory at the end of March climbed 5.7 percent to 1.67 millionexisting homes available for sale, although this is still 7.2% lower than ayear ago when it was 1.80 million. This has fallen year-over-year for 34consecutive months, the report said. Unsold inventory is at a 3.6-month supplyat the current sales pace, compared to 3.8 months a year ago.
Single-familyhome sales rose edged up 0.6 percent to an annual rate of 4.99 million in Marchfrom 4.96 million in February, but are 1% below the 5.04 million sales pace ayear ago. The median existing single-family home price was $252,100 in March,up 5.9% from March 2017.
Existingcondominium and co-op sales increased 5.2% to a seasonally adjusted annual rateof 610,000 units in March, but are still 3.2% below a year ago, the report said.The median existing condo price was $236,100 in March, 4.8% above a year ago.
By Allen SykoraFor Kitco News
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