New-Home Sales Roar Back in May after April Showers
Sales of newly-constructed homes rebounded in May, and government data was revised to show a stronger spring selling season than had been previously reported, another sign that the housing market remains on firm footing.
New-home sales ran at a seasonally adjusted annual rate of 610,000, the Commerce Department said Friday. That was 2.9% higher than in April and 8.9% higher than a year ago.
It was the second-highest monthly tally of 2017 and easily beat forecasts of a 590,000 pace, which was the consensus among economists surveyed by MarketWatch.
So far in 2017, 271,000 new homes have been sold, which is 12% higher than during the same period last year.
The median sales price in May was $345,800, up from $310,200 in April and $296,000 in May 2016. At the current pace of sales, it would take 4.6 months to exhaust available supply in May, the same as in April.
The government’s new-home sales data releases, which are based on small samples, are often heavily revised.
Big builders like Lennar LEN have recently reported earnings that beat expectations.