New Home Sales Increase in May

According to HUD and the Census Bureau, the month of May saw an increase in the sales of newly built homes. The sales rose by 7.6% which amounts to a seasonally adjusted annual rate of 369.000 homes. While there was an increase overall throughout the country, these sales were very regional. The Northeast had new home sales increase by 36.7% while the Midwest actually declined by 10.6%. This all indicates that more potential home buyers are being drawn to the housing market because of the current low mortgage rates. The steadying and slowly recovering economy is lending more confidence to home builders and home buyers alike. Despite the increase in new home sales, however, the inventory of new homes for sale remains at a low 145,000 units in May. Compared to March and April, though the month of May proved to have solid growth which will eventually lead to an increased need for the construction of new homes.

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