A surge in new home sales in the South and the West was enough to offset a plunge in residential sales in the Northeast and Midwest.
On a preliminary basis, the sale of 58,000 new, privately owned, single-family houses were completed during all of May 2017.
New home sales
edged up from an upwardly revised 57,000 the one month prior and an upwardly revised 53,000 one year prior.
Historical data from the Census Bureau and Department of Housing and Urban Development, which jointly released the latest data Friday, indicate that there were
272,000 existing home sales in the first-five months of 2017.
Adjusting for seasonal factors, the annual rate of new home sales was a preliminary 610,000
last month. The rate strengthened from an upwardly revised 593,000 in April. It was also more robust than an upwardly revised 560,000 in May 2016.
Granger MacDonald, chairman of the National Association of Home Builders, said in a written statement that the group expects continued gains throughout this year.
NAHB Chief Economist Robert Dietz explained the group’s optimism.
“With more consumers entering the market, further job growth and tight existing home inventory, the new home sector should continue to expand,” Dietz said.
In the West, the seasonally adjusted annual volume of new home sales
was 162,000, increasing from a month earlier by 13 percent — the best month-over-month performance of any region. A 6 percent increase left the South’s rate at 360,000.
In the Northeast, however, the rate was just 33,000, down 11 percent from April. The Midwest rate was 55,000, plunging from the prior month by 26 percent — the worst month-over-month decline.
A seasonally adjusted 5.3 month U.S. supply in May was no different
than the previous month.
The median U.S. sales price was $345,800 in May 2017, and the average sales price was $406,400.
