The housing market, at least on paper, has come all the way back as median prices increased 4.7% in May from April to $239,700. Of course, that’s misleading, but the housing market is a rare solid part of the economy. The 5.53 million unit annual pace of sales was actually less than expected but still the best since February 2007.

Regionally

I’m worried prices have climbed too high too fast a result of short supply, which is now only 2.15 million, and only represents 4.7 months of current demand- far below historic norms. Coupled with strong earnings from Pulte this morning, and Lennar yesterday, it’s clear housing is our refuge.