- New home sales increased sharply in May, rising 16.6% m/m to a seasonally adjusted annual rate of 676,000 (Briefing.com consensus 635,000). The increase came on the heels of a sharp downward revision for April to 580,000 from 623,000.
- On a yr/yr basis, new home sales were were up 12.7%.
- The seasonally adjusted annual rate of new home sales was higher in eight of the previous 12 months.
- The median sales price increased 1.7% yr/yr to $317,900 while the average sales price fell 2.7% to $368,800.
- New home sales by region: Northeast (+45.5%); Midwest (-6.4%); South (+15.2%); and West (+29.0%).
- At the current sales pace, the supply of new homes for sale stood at 5.6 months versus 6.7 months in April.
- The percentage of new homes sold for $399,999 or less accounted for 72% of new homes sold, versus 72% in April and 68% in the same period a year ago.
- The key takeaway from the report is that sales activity bounced back smartly in May, reflecting a welcome pickup in contract signings as COVID-19 shutdown pressures lessened. This understanding should foster expectations that sales activity will continue to improve in coming months given the tight supply of existing homes for sale, low mortgage rates, and pent-up demand.
|Median Price Y/Y||1.7%||-10.6%||6.8%||3.4%||7.7%|