Steel Markets

New Home Sales Rebound in May

Written by Sandy Williams


New home sales in May rebounded after an April decline to a seasonally adjusted annual rate of 610,000, an increase of 2.9 percent. Median sales price increased to $345,800 and the average sales price was $406,400. Median sales price reached a record high, up 16.6 percent from a year ago.

Inventory at the end of May stood at 268,000, a supply of 5.3 months at the current sales rate. Inventory rose 1.5 percent in May, but remains low due to a shortage of available lots.

Regionally, sales increased 13.3 percent in the West and 6.2 percent in the South on a month-over-month basis. Sales plunged 25.7 percent in the Midwest and 10.8 percent in the Northeast.

“This month’s report is in line with our forecast, and consistent with solid builder confidence readings,” said National Association of Home Builders Chief Economist Robert Dietz. “With more consumers entering the market, further job growth and tight existing home inventory, the new home sector should continue to expand.”

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