US New Home Sales Slide From 8-Year High

New US single-family home sales fell 6 percent to 551,000 in May of 2016 compared to market expectations of 560,000. The April's sales was downwardly revised to 586,000 units, but still remained the highest since February 2008. The pace points to a healthy growth in the housing sector helped by consistent employment gains and ultra-low mortgage rates.

Sales in the Northeast slumped 33.3 percent to 34,000; those in the West fell 15.6 percent to 124,000 and sales in the South declined 0.9 percent to 323,000. In contrast, sales in the Midwest went up 12.9 percent to 70,000.  

The median sales price of new houses sold in May declined to $290,400 from $320,200 in April but rose from $287,400 a year earlier. The average sales price also fell to $358,900 from $378,200 in the previous month but went up from $340,800 a year earlier. 

The stock of new houses for sale increased 1.2 percent to 244,000,  the highest since September of 2009.. This represents a supply of 5.3 months at the current sales rate. 

Year-on-year, new home sales grew 8.7 percent in May. 

US New Home Sales Slide From 8-Year High

US Census Bureau | Joana Taborda |
6/23/2016 4:18:59 PM