- New home sales increased 18.6% in May to 504,000 from a downwardly revised 425,000 (from 433,000) in April. The Briefing.com consensus expected new home sales to increase to 440,000.
- Sales topped 500,000 for the first time since May 2008.
- The spike in new home sales coincided with a large decline in mortgage rates. As rates turn higher, it could dent future sales growth.
- Demand was strong in all areas of the country, led by a 54.5% increase in sales in the Northeast and a 34.0% increase in the West.
- Supply levels fell to 4.5 months at the current sales pace from 5.3 months in April. That is the lowest level of supply since June 2013.
- The median sales price increased 6.9% y/y to $282,000.
- Affordability concerns as a result of elevated new home price premiums have led to relatively stronger growth in the existing home sector.
|Median Price Y/Y||6.9%||-3.4%||10.8%||1.2%||7.3%|