Sales of new single-family houses in the United States dropped 7.8 percent from the previous month to a seasonally adjusted annual rate of 626 thousand in May 2019, while markets had forecast a 1.9 percent increase to 680 thousand. That was the lowest level since December despite lower mortgage rates.
April's sales pace was revised up to 679 thousand units from the previously reported 673 thousand units.
About two-thirds of the houses sold last month were either under construction or yet to be built.
New home sales, which account for about 10.5 percent of housing market sales, decreased in the West (-35.9 percent to 125 thousand) and Northeast (-17.6 percent to 28 thousand), but rose in the South (4.9 percent to 389 thousand, the highest level since July 2007) and Midwest (6.3 percent to 84 thousand).
The median new house price declined 2.7 percent to USD 308,000 in May from a year ago. The average sales price rose 1.2 percent to USD 377,200.
The stock of new houses for sale went up 0.3 percent to 333 thousand. At May's sales pace it would take 6.4 months to clear the supply of houses on the market, up from 5.9 months in April.
Year-on-year, new home sales fell 3.7 percent.
6/25/2019 2:14:41 PM