ARLINGTON, Va.—New-home sales rose to 676,000 units in May, up 16.6% from April's downwardly revised rate of 580,000 units and 12.7% from a year ago.
"In total this year so far, new home sales are down 12.7% versus last year, which is considerably smaller than the worst of the housing crisis where year-over-year numbers were down more than 40%," said NAFCU Chief Economist and Vice President of Research Curt Long. "In addition, the construction backlog grew, accounting for 27% of sales in May, up from 22% in April."
Sales grew in three regions during the month, rising 45.5% in the Northeast, followed by the West (+29%) and the South (+15.2%). Sales in the Midwest declined 6.4%.
"Though given last month's major revision, some caution should be used in interpreting this month's rise," Long added. "Regardless, NAFCU expects the housing market to continue its recovery and be a bright spot in an otherwise difficult economy."
Based on current month sales, there were 5.6 months of supply in May, down from 6.7 months in April. The number of unsold homes left on the market also declined to 318,000 units and represented a 16.4% reduction from year-ago inventory levels.
Of note, the median new home price increased from $309,900 (non-seasonally adjusted) in April to $317,900 in May. Prices are up 1.7% from a year ago, Long said.