Not Shocking: Sales of existing homes drop 5.4% in June

Not really shocking.

“The National Association of Realtors said June sales dropped 5.4% to a seasonally-adjusted annual rate of 4.37 million, compared to an upwardly revised 4.62 million in May.”

Lower inventories lead to lower sales.   It is also possible to say lower sales may have also lead to lower inventories.  Ultimately an economy may function more efficiently with lower inventory and lower sales, if we are able to maintain a liquid marketplace.  Efficiency gains are inheritently deflationary.

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