May existing home sales -0.4% to 5.43 mln...>

US DATA: May existing home sales -0.4% to 5.43 mln saar (-3.0% y/y), below

expectations for 5.49m. This followed a downward revised 5.45m pace in April

(prev 5.46m). Housing affordability remains a key issue, the NAR's Yun said.

2018 sales year-to-date -1.4% vs same 2017 period.

- The 2Q sales pace, at 5.44m, was modestly lower than the 5.51m 1Q average.

- Sales were -0.6% for single-family homes and +1.6% for condos. Sales rose in

NE (+4.6%), but declined in the MW (-2.3%), South (-0.4%), and West (-0.8%).

- The supply of homes +2.8% to 1.85m, -6.1% y/y. The months supply ticked up to

4.1 months from 4.0 months in April, below the 4.2 months supply a year ago. At

the same time, the median sales price rose solidly in May to record high

$264,800, +4.9% from a year earlier, well outpacing the pace of wage growth and

keeping young new buyers out of the market. Homes are still selling very quickly

once they are on the market.