Sales of new single-family houses were at an adjusted rate of 476,000 in May according to the U.S. Department of Commerce. This is 29.0 percent above May 2012 and 2.1 percent above April.
"Builders are reporting increased demand for new homes as buyers seek to take advantage of historically low mortgage rates while they remain so favorable," observed Rick Judson, chairman of the National Association of Home Builders (NAHB). "Consumers in markets nationwide are definitely becoming more confident about making a home purchase as firming prices and tighter inventories provide further evidence of the ongoing housing recovery."
The median sales price of new houses sold in May was $263,900, and the average was $307,800. The DOC estimates 161,000 new houses were for sale at the end of May, which represents a 4.1-month supply at the current sales rate.
