The housing market, at least on paper, has come all the way back as median prices increased 4.7% in May from April to $239,700.  Of course, that’s misleading, but the housing market is a rare solid part of the economy. The 5.53 million unit annual pace of sales was actually less than expected but still the best since February 2007.

Regionally

• Northeast +4.1%
• South +4.6%
• West +5.4%
• Midwest -6.5%

I’m worried prices have climbed too high too fast a result of short supply, which is now only 2.15 million, and only represents 4.7 months of current demand- far below historic norms.  Coupled with strong earnings from Pulte this morning, and Lennar yesterday, it’s clear housing is our refuge.

Brexit Vote

From what I hear, there is a new poll that shows the Leave vote regaining momentum. This has turned the market lower. It’s really amazing how sensitive the markets are to this historic vote. Part of me continues to believe its much ado about nothing.

Be that as it may, we have to respect the market even when it’s acting irrational.