Tuesday, June 24, 2014

New Home Sales Jump 18.6% in May

New home sales increased to an annual pace of 504,000 units in May. The pace, 18.6% above the previous month’s pace, is the strongest pace since mid-2008 and the strongest month-over-month gain since the early 1990s. May’s pace is 16.9% above year ago levels. By comparison, April’s report was 3.7% higher than the year-ago pace. April’s pace was revised down by 1.9%.

The gains in May were broad-based, with each of the four regions posting gains. Three of the four regions saw double-digit increases, although two of the three had declines the previous month. The Northeast posted the sharpest gains at 54.5%. The South and West grew 14.2% and 34.0%, respectively, while the Midwest showed modest growth of 1.4%. The number of new home sales increased the most in the South and the West, growing by 33 homes each.

As home sales picked up over the month of May, the supply of homes declined to 4.5 months, from 5.3 months supply in April.

The median price of a new home rose 5.4% to $279,200, which is 5.9% higher than year-ago levels.

Read the Census report.

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