Demographic trends say sales should continue to rebound, as we eventually need to sell new homes at a 950,000 annual rate to meet population growth and replace teardowns. The supply of unsold new homes is now down to 7.6 months, just above the ideal 6-month level. Actual inventories are down to 210,000, their lowest level since 1968, when there were 35% fewer people around.

We also saw that home prices rose 4.6% in May, year-over-year, as tracked by the Standard & Poor’s/Case-Shiller National Home Price Indices. The 20-city index was UP 1.3% over the prior month, with 19 of the 20 metros showing gains during that period.

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