New Home Sales Rise in May but Remain Weak

Mortgage & Real Estate

New home sales jumped 7.6% in May from the prior month to the highest level in two years.

The Census Bureau reported Monday that sales of newly built single-family homes rose to a 369,000 seasonally adjusted annual rate in May from a 343,000 rate in April.

Overall, sales are up nearly 20% from a year ago.

Wall Street analysts were forecasting that new home sales would edge up by less than 1% from April to May.

IHS Global Insight economists were expecting a 3.5% increase in new homes sales.

“New home sales rose to their highest level since April 2010,” according to Global Insight economist Patrick Newport.

And the February and March sales numbers were revised upward.

“Still, sales remain extremely low,” Newport said. And the number of new homes for sale is near a record low. Builders had only 145,000 new homes on the market at the end of May.

 

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