Home Prices Fall

Market Overview

1. Sales of existing homes in the United States experienced a 3.4% decline in April, reaching the lowest point in three months. This drop represents a trend of monthly sales declining in 14 out of the last 15 months. On a year-over-year basis, sales have fallen by 23% and continuously declined for 20 consecutive months. Additionally, the median price of these homes experienced its most significant decline in 11 years, dropping by 1.7% in April compared to the previous year, with a median price of $388,800.
   

2. Walt Disney Co. has faced an eventful week, including a lawsuit by Florida Governor Ron DeSantis, resulting in temporary closing of its luxury Star Wars-themed hotel. The company also scrapped plans for a new corporate campus, cancelled employee relocations, and implemented cost-cutting measures by removing certain programs from its streaming services.
   

3. Last week, initial jobless claims experienced the most significant decline since November 2021. However, this decrease was primarily driven by a reduction in fraudulent claims originating from Massachusetts, which had inflated the data from the previous week. The four-week average of jobless claims slightly decreased, and continuing claims reached their lowest level since early March. These figures suggest a labour market that remains relatively tight, potentially exerting upward pressure on wages.