The gold market stays steady at around $2,400 per ounce while the U.S. housing market remains slow. Fewer new buyers are entering the market, according to the latest sales data from the National Association of Realtors (NAR).
Last Thursday, the NAR reported that existing home sales dropped by 4.3% to 4.19 million annually, down from March’s 4.38 million. The gold market keeps going strong, with June gold futures trading at $2,399.60 an ounce, up nearly 0.5% for the day.
The Chief Economist of NAR, Lawrence Yun, mentioned that although home sales are picking up from lows, they’re still slow because interest rates haven’t changed much. Despite a good economy and job market, some economists worry about higher inflation affecting big purchases.
Recent inflation data made the market delay expectations for the Federal Reserve’s policy easing. This means mortgage rates stay high. Meanwhile, home prices keep rising due to low supply.
By the end of March, there were 1.11 million homes for sale, up 4.7% from February and 14.4% from last year. Yun mentioned that more homes for sale would be helpful. The median price for all types of homes in March was $393,500, up 4.8% from 2023.
