CNBC released an article describing the current state of the housing market:
- Rising building materials costs, as well as shortages of land and labor, have left builders unable to bridge the inventory gap, pushing up house prices
- The median house price increased 4.5 percent from a year ago to $269,600 in July
- U.S. home sales fell for a fourth straight month in July
- July's drop marked the longest streak of monthly declines since 2013
Economists polled by Reuters had forecasted existing home sales would rise in July.
What do you guys think of this incorrect forecast? What does this downward trend in sales mean for the housing market?