Sales of single-family new construction homes across the U.S. went down 6% in May to a seasonally adjusted annual rate of 551,000 units, according to the latest report by the U.S. Department of Housing and Urban Development (HUD) and the U.S. Census Bureau.
The current supply of new homes for sale in May was at 244,000 units with a median sales price of sold homes at $290,400. At the current sales pace, there is an estimated 5.3-month supply of inventory.
Regionally, the Northeast part of the country had the largest share of sales with 33% of the market. The West was the second largest market at 15.6%, and the Midwest at 12.9%. In the South, sales dropped by 0.9%.
The National Association of Builders Chairman, Ed Brady had said this about the latest numbers: “Although new home sales are down from a robust reading in April, they remain solid and builder confidence in the market is growing — two indicators that the housing sector should strengthen throughout the year.”
“At an annual pace of 551,000 units, new home sales are up relative to the first few months of 2016 as well as last year,” said NAHB Chief Economist, Robert Dietz. “The sales market continues to make overall gains despite month-to-month volatility.”