Sales of newly built, single-family homes rose 7.6 percent to a seasonally adjusted annual rate of 369,000 units in May, according to data from HUD and the U.S. Census Bureau.
“May’s sales report is a welcome sign that the market has returned to a more solid growth path following lackluster reports in March and April, and is in keeping with our expectations for continued, steady improvement through the end of this year,” said NAHB Chief Economist David Crowe. “While the current sales rate remains low by historical standards, the ongoing decline in the month’s supply of new homes will necessitate additional construction in certain markets.”
Regionally, new-home sales were mixed in May.
- Northeast +36.7%
- South +12.7%
- Midwest -10.6%
- West -3.5%
The inventory of new homes for sale was almost unchanged at a low level of 145,000 units in May, reflecting a historically slim, 4.7-month supply at the current sales pace.