New-home sales in May were at a seasonally adjusted annual rate of 610,000, a 2.9 percent increase compared with April’s rate of 593,000 and 8.9 percent above May 2016’s rate of 560,000, according to the U.S. Census Bureau.
"This month's report is in line with our forecast and consistent with solid builder confidence readings," said Robert Dietz, National Association of Home Builders chief economist, in a statement. "With more consumers entering the market, further job growth and tight existing home inventory, the new home sector should continue to expand."
New home sales in the Northeast decreased 10.8 percent to 33,000. Sales in the Midwest dropped 25.7 percent to 55,000. Sales in the South grew 6.2 percent to 360,000, while the West saw sales rise 13.3 percent to 162,000.
The median sales price of new homes sold in May was $345,800, an 11.47 percent increase compared with April’s median price of $310,200 and a 16.82 percent increase versus May 2016’s median price of $296,000.
