Residential real estate company Redfin reports that despite the shortage of supply, home sales increased 7.5% in May from last year, while the median sale price rose 6.8% year-over-year to $288,000. Inventories fell to just 2.7 months of supply where a typical number is around six months. This anemic supply number is the reason for the continued increase in sales prices. In addition, the typical home went under contract in 37 days, setting a new record for home-selling speeds.

Fannie Mae reported its June Economic and Housing Outlook revealing that the current economic expansion, now in its ninth year, is forecasted to see full year 2017 Gross Domestic Product at 2.0%. After anemic consumer spending of 0.6% in the first quarter of 2017, it is expected to rise by 3.1% in the April-May-June period. In the housing market, a labor market shortage and tight inventory is constraining sales and pushing prices higher. Fannie Mae expects total home sales to rise 3.2% this year and total single-family mortgage originations to drop about 21% to $1.62 trillion.

The National Association of Home Builders reported on Monday that demand for new construction grows as housing stock ages. Housing stock has increased to 37 years, up from 31 a decade ago, which bodes well for remodelers and the Home Depot's and Lowe's of the world. In addition, the aging market of homes could spark a demand for new construction down the road.