New Home Sales Slightly Ahead Of Consensus, Still Awful (SPY)

New home sales fell 2.5% to 512,000 from 525,000 the month earlier, but came in slightly ahead of the 510,000 estimate. The figure represents a 40.3% drop year-over-year. Importantly, there is still no sign of stabalization since inventories actually rose, from 10.7 months of supply the month earlier to 10.9 months of supply in May. Until inventories start to shrink, prices should continue to fall.

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