Sales of newly built, single-family homes in May rose 2.9% to a seasonally adjusted annual rate of 610,000 units after an upwardly revised April reading, according to newly released data from HUD and the Census Bureau.
“We are seeing solid overall growth in new home sales this year,” said NAHB chair Granger MacDonald. “Sales are up more than 12% from this time last year, and we expect continued gains throughout 2017.”
“This month’s report is in line with our forecast, and consistent with solid builder confidence readings,” said NAHB Chief Economist Robert Dietz. “With more consumers entering the market, further job growth and tight existing home inventory, the new home sector should continue to expand.”
The inventory of new home sales for sale was 268,000 in May, which is a 5.3-month supply at the current sales pace.
Regionally, new home sales increased 13.1% in the West and 6.2% in the South. Sales fell 10.8% in the Northeast and 25.7% in the Midwest.
Learn more in this article in NAHB’s Eye On Housing blog.