The rate of new single-family home sales, as estimated by the Census Bureau Wednesday, improved to a seasonally adjusted annual rate of 546,000 in May, the fastest pace in seven years and a 2.2 per cent increase over April.
Meanwhile the National Association of Realtors (NAR) Pending Home Sales Index increased for the fifth straight month in June, rising to the highest level in nine years. This follows the NAR May existing home sales report, which increased to the highest pace in six years to a 5.35 million seasonally adjusted annual rate. The June sales rate was 5.1 per cent higher than April and a 9.2 per cent gain over May of last year.
US New and Existing Home Sales
The May data from NAR indicated that the first-time buyer share, a notably weaker element of the housing market, increased to 32 per cent in May, up from 30 per cent in April.
New home inventory remained steady at 206,000 units nationwide completed and under/not started construction. The months’ supply measure fell to 4.5, the lowest since June 2013. Low inventory and growing demand will support increases for single-family construction in the months ahead.
Sales growth is occurring on the re-sale side of the market as well. The National Association of Realtors (NAR) Pending Home Sales Index increased for the fifth straight month in June, rising to the highest level in nine years. This follows the NAR May existing home sales report, which increased to the highest pace in six years to a 5.35 million seasonally adjusted annual rate. The June sales rate was 5.1 per cent higher than April and a 9.2 per cent gain over May of last year.