Existing Home Sales Rise Making Homebuilders Look Good Again

Existing Home Sales for May were higher than economists had expected, increasing 4.9%. However, the sales in this May were down 5% from May 2013. Still, investors were encouraged with the sequential move higher as there had been concerns about the housing sector stalling out this year. Mark Newton, the chief market technician at Greywolf Equities said that the homebuilder group was showing signs of performance. Homesbuilders had sold off on concerns that the group would not recover from the years slow start. Newton believes the group could actually perform quite well for investors.