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New Home Sales surge in May, pushing median home prices higher

What is the New Home Sales report?  The New Home Sales report shows the number of newly constructed homes with a committed sale each month. The level of sales indicates housing market trends and housing demand, while the supply serves as a clue to the level of housing pressure.

What’s happened recently?   The Commerce Department reported that New Home Sales in May jumped nearly 3 percent from April to an annual rate of 610,000, above the 599,000 expected. Sales were up nearly 9 percent from May 2016, with May being the second highest month recorded for 2017.

What’s the bottom line?  A tight inventory supply of just 4.6 months pushed the median new home sale price to a record high. It remains to be seen if builders can meet demand as lack of skilled labor, cost of building materials and limited buildable lots challenge construction.

Herb Levin

About Herb Levin

Herb has decades of experience in the mortgage industry. He prides himself in providing his clients with personal service and a comfortable and educational experience. A native of the Chicagoland area, Herb knows how to conduct high powered business with Midwest class. Connect and follow Herb at the social media links below.

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