New-Home Sales Reach 7-Year High

Filed in Economics by on June 23, 2015 0 Comments

hispanic coupleSales of newly built single-family homes rose 2.2% to a seasonally adjusted annual rate of 546,000 units in May, according to newly released data from HUD and the U.S. Census Bureau. This is the highest new-home sales rate since February 2008.

“Our builders are seeing motivated buyers and the release of pent-up housing demand,” said NAHB Chairman Tom Woods. “However, builders are facing supply-chain challenges, which is affecting the inventory of new homes.”

“This month’s new-home sales report is consistent with other government data and rising builder confidence that indicate a continual recovery of the housing market,” said NAHB Chief Economist David Crowe. “The uptick in existing-home sales bodes well for builders, as it shows that the sellers are able to buy a new home.”

Regionally, home sales were mixed, rising 87.5% in the Northeast and 13.1% in the West. The Midwest registered a 5.7% decline and the West fell 4.3%.

The inventory of new homes for sale was 206,000 units in May. This is a 4.5-month supply at the current sales pace.

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