New Residential House Sales Declined 5.9% in May as Prices Went Up

U.S. new home sales fell 5.9% in May, the second consecutive month as the median price increased to a record high.

Source: U.S. Census Bureau

SPDR Homebuilders ETF is down 0.49%

Seasonally adjusted annual sales were 796,000.

In April, sales declined 7.8% after a revision of the previous projected figure of a 5.9% decline.

New home median price rose to $374,400, an increase of 18.1% from the previous year figure of $317,100.

Average home price for May went up $420,600, up from last year’s $368,700.

The increase is associated with  market shortage of homes and soaring prices of raw materials and labor.

Supply of new homes in May rose to $330,000, 4.8% higher than April.

Existing home sales decreased in May, the fourth consecutive month, with the median price increasing 23.6% from 2020.

Numerous price quotes as homes hit the market have pushed prices higher than listed as demand increases following low mortgage rates.

The Southern region with more than half of new home sales yearly led with a 14.5% decline.

Midwest sales remained even, Northwest gained 33.3% while the West gained by 6.7%.