1. August home sales flat at 4 million units, down 0.2% from July. 2. Upper-end home sales up 8% while lower-end sales dropped over 10%. 3. Midwest exceeds national home prices by 22%, benefiting affordability. 4. Total home supply fell 1.3%, first drop since early 2023. 5. Median home price up 2% annually, marking 26 consecutive months of gains.
Despite flat overall sales, price increases and supply constraints suggest stability. Historical trends show sustained prices during limited supply, supporting ITB's performance.
Home sales dynamics directly affect ITB as it tracks homebuilder performance. Continued pricing resilience amidst reduced inventory supports potential gains.
Recent mortgage rate declines could improve buyer activity shortly. Rapid adjustments in the housing market can have effects within months.