New-Home Sales Hit 6-Year High
Sales of new single-family homes flew through the roof for May, jumping 18.6% to a seasonally adjusted annual rate of 504,000, according to a Commerce Department report (link opens a PDF) released today.
On top of last month's unexpectedly strong 425,000 rate, this latest report served up another surprise for analysts, who had expected a rate of just 441,000 for May. The U.S. hasn't seen new-home sales this high since May 2008.
On a regional level, everywhere except the Midwest experienced strong month-to-month gains. Northeast sales soared 54.5%, followed by the West's 34%, a 14.2% rise in the South, and just a 1.4% bump in the Midwest. In the past 12 months, national sales of new homes are up a similarly strong 16.9%.
At the current rate of sales, there is an estimated 4.5 months of supply, compared with 5.3 months in April. As supplies fell for May, median prices increased, up $12,300 to $282,000.
This latest report mirrors a National Association of Realtors report released yesterday, which pointed to strong 4.9% sales growth for existing homes in May. A home price report released earlier today provided further evidence of slowing home price growth in April, painting a clearer picture of May's runaway sales numbers.
The article New-Home Sales Hit 6-Year High originally appeared on Fool.com.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.