New single-family home sales reached the highest pace in six years in May.
New-home sales were at a seasonally adjusted annual rate of 504,000 in May, a gain of 18.6% over a slightly downwardly revised April (425,000), according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. This is the highest rate since May 2008 and is a significant increase from the winter low point for sales in March (410,000).
“These numbers are in line with our recent builder surveys, which indicate that more consumers are getting off the fence and coming back into the marketplace,” said NAHB Chairman Kevin Kelly.
NAHB is forecasting that single-family new home sales will total 515,000 in 2014, a nearly 20% year-over-year gain.
Regionally, new-home sales were up across the board. Sales rose 54.5% in the Northeast, 34% in the West, 14.2% in the South and 1.4% in the Midwest.
The inventory of new homes for sale held steady at 189,000 units in May. This is a 4.5-month supply at the current sales pace. Total inventory levels have remained in the 183,000 to 190,000 range since September 2013.