New Home Sales Exceed Projections in May
New single-family home sales in the U.S. are on the rise. According to the Census Bureau and Department of Housing and Urban Development, sales increased 16.6% in May to a seasonally adjusted annual rate of 676,000. This is better than expected as MarketWatch reported analysts predicted a rate of 650,000, and Reuters' economists forecasted sales would hit 640,000. Sales are also nearly 13% better than May 2019. This is the best month of May since 2007.
"New home sale[s] have held up better than existing homes, as there are fewer restrictions on showings. … Buying conditions rebounded sharply over the past month, reflecting lower interest rates and improvement in the job market," states Wells Fargo Securities.
Regionally, the Northeast, South and West improved from month to month. All four regions, including the Midwest, saw sales increases from May 2019. The median sales price in May was just shy of $318,000, while the average sales price was slightly under $370,000—both increases from April.
-Michael Miller, managing editor