New Home Sales Decline in May

Window & Door
June 25, 2019
Markets

Sales of newly built, single-family homes fell 7.8 percent to a seasonally adjusted annual rate of 626,000 units in May, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. On a year-to-date basis, however, new home sales for 2019 are 4 percent higher than the same period in 2018.

"The report shows growth in sales in the $200,000 to 300,000 price range, which indicates middle-class demand for housing is being supported by low rates and solid employment," says Greg Ugalde, chairman of the National Association of Home Builders.

"The May numbers are a bit surprising given lower mortgage interest rates and solid builder confidence data," says Robert Dietz, NAHB chief economist. "Based on these conditions, we expect June new home sales figures will show a rebound."

The inventory of new homes for sale was 333,000 in May, representing a 6.4 months' supply. The median sales price was $308,200. The median price of a new home sale a year earlier was $316,700.