New home sales surge in May
New home sales in May rose the second-highest level since the Great Recession
Sales of newly built, single-family homes increased 6.7% in May to a seasonally adjusted annual rate of 689,000 units after a downwardly revised April report, according to the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
Regionally, new home sales soared 17.9% in the South to a post-recession high and remained unchanged in the Midwest. Sales fell 10% in the Northeast and 8.7% in the West.
“Sales numbers continue to grow, spurred on by rising home equity, job growth and reports of a greater number of millennials entering the single-family housing market,” said Randy Noel, chairman of the National Association of Home Builders and a custom home builder from LaPlace, La
The inventory of new homes for sale was 299,000 in May, which is a 5.2-month supply at the current sales pace. The median sales price was $313,000. In addition to adjusting for seasonal effects, the May reading of 689,000 units is the number of homes that would sell if this pace continued for the next 12 months.
According to NAHB Senior Economist Michael Neal, pricing had a big impact on the sales surge.
“We saw a shift to more moderately priced home sales this month, which is an encouraging sign for newcomers to the market,” Neal said. “Since the end of the Great Recession, inventory has tracked the pace of sales growth. While we expect continued gains in single-family housing production, inventory may be partially constrained by ongoing price increases for lumber and other construction materials.”
Sales of newly built, single-family homes increased 6.7% in May to a seasonally adjusted annual rate of 689,000 units after a downwardly revised April report, according to the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
Regionally, new home sales soared 17.9% in the South to a post-recession high and remained unchanged in the Midwest. Sales fell 10% in the Northeast and 8.7% in the West.
“Sales numbers continue to grow, spurred on by rising home equity, job growth and reports of a greater number of millennials entering the single-family housing market,” said Randy Noel, chairman of the National Association of Home Builders and a custom home builder from LaPlace, La
The inventory of new homes for sale was 299,000 in May, which is a 5.2-month supply at the current sales pace. The median sales price was $313,000. In addition to adjusting for seasonal effects, the May reading of 689,000 units is the number of homes that would sell if this pace continued for the next 12 months.
According to NAHB Senior Economist Michael Neal, pricing had a big impact on the sales surge.
“We saw a shift to more moderately priced home sales this month, which is an encouraging sign for newcomers to the market,” Neal said. “Since the end of the Great Recession, inventory has tracked the pace of sales growth. While we expect continued gains in single-family housing production, inventory may be partially constrained by ongoing price increases for lumber and other construction materials.”