New homes sales rebounded 2.9 percent in May

  • New homes sales rebounded 2.9 percent in May

New homes sales rebounded 2.9 percent in May

At the same time, the number of new single-family homes for sale across the county ticked up another 1.5 percent to 268,000, which is the most available inventory since the third quarter of 2009 and 11.2 percent higher versus the same time previous year.

New-home sales rose in May and prices hit a record level, more evidence of a housing market characterized by strong demand and tight inventories.

Economists polled by Reuters had forecast new home sales, which make up about10 percent of all home sales, rising 5.4 percent to a pace of 597,000 units last month from the previously reported rate of 569,000 units.

The median sales price in May was $345,800, up from $310,200 in April and $296,000 in May 2016.

The median price of new home sales rose strongly by 11.5 percent on the month.

Still, the housing market seems to have legs.

In comparison to the same month one year ago, sales were 8.9% ahead. With demand outstripping supply, house prices remain elevated.

Sales of new homes in the United States picked up in May, as prices surged to the highest levels on record, the Commerce Department reported Friday.

"The pressure to close deals quickly, which has afflicted the existing home sales market, is also seeping into the market for new homes", Ms. Gudell said.

The U.S. dollar pared losses against the yen after the data.

At May's sales rate, it would take 5.3 months to clear inventory, unchanged from April.

Regionally, new home sales increased 13.3 percent in the West and 6.2 percent in the South. Sales fell 10.8 percent in the Northeast and 25.7 percent in the Midwest.

So far in 2017, 271,000 new homes have been sold, which is 12% higher than during the same period past year. That was the same supply as was seen in April but up from a supply of 4.9 months in March.