May Sees Increase in New Home Sales

New home sales have finally increased after four months of decline
by Staff

New, single-family homes remained in high supply with 444,000 available for sale.

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New, single-family homes remained in high supply with 444,000 available for sale.

The National Association of Home Builders has reported an increase in the sales of new homes for the first time in four months. The sale of new, single-family homes rose 10.7% in May, though overall new home sales are on a 10.6% downturn on a year-to-date basis. This new data is according to the U.S. Department of Housing and Urban Development as well as the U.S. Census Bureau. "Though new home sales registered a solid increase in May, we expect sales to decline in June following the Fed's action to significantly raise interest rates in an effort to cool the economy and ease inflation," explained Jerry Konter, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Savannah, Ga. Many buyers are being priced out of the market due to high construction costs and rising mortgage prices, as demonstrated by the number of houses selling for $300,000 going from 23% of houses to 10%.