New Home Sales Up 18.6% in May

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New estimates released by the U.S. Census Bureau and the Department of Housing and Urban Development show sales of new single-family homes rose 18.6 percent in May. It was the largest one month gain since January 1992 and far exceeded economists’ expectations for the month. Economists surveyed by the Wall Street Journal, for example, predicted a less than 1 percent gain. Combined with a recent spike in sales of previously owned homes, the new data indicates that home sales are showing signs of a rebound after falling behind during the first quarter of the year. In fact, the improvement means new home sales are now nearly 17 percent higher than they were a year earlier. The median sale price of new houses sold in May was $282,000; the average price was $319,200. Also, there was an estimated 189,000 new homes available for sale at the end of the month. At the current sales pace, that represents a 4.5-month supply. Typically, a six-month supply is considered healthy for the housing market. More here.