By According to data from the Commerce Department released on Tuesday, sales of new single-family houses in the United States surpassed the expectations of economists, increasing by double digits in May. Below are the key takeaways:
Significant Sales Increase
- New home sales rose by 12.2% in May, compared to the previous month, reaching a seasonally adjusted annual rate of 763,000.
Economists Underestimated
- Economists’ predictions were below expectations, expecting home sales to decrease by 1.2%, reaching a seasonally adjusted annual rate of 675,000.
Substantial Annual Rise
- Compared to the same period last year, sales rose by 20%, when they reached an adjusted annual rate of 636,000.
Decrease in Median Price
- The median price of a new home decreased from $402,400 in April to $416,300 in May.
Minor Reduction in Supply
- As of the end of May, the seasonally adjusted estimate of new homes available for sale was 428,000, indicating a minor reduction in supply to 6.7 months at the current sales rate.
These new figures signify a positive outlook and growth for the housing industry.
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