U.S. New Home Sales Unexpectedly Jump in May; Highest Level Since Feb. ’22
Summary
- May sales +12.2% m/m to 763,000 units SAAR; the third straight monthly rise.
- Sales gain m/m in all four major regions; sales rise y/y except in the West.
- Median sales price, up for the third time in four months, rebounds to $416,300.
- Supply of new homes for sale falls to the lowest since Feb. ’22.
New single-family home sales advanced 12.2% m/m (20.0% y/y) to 763,000 units at an annual rate in May after rises of 3.5% to 680,000 in April (+4.1%, 683,000 initially) and 5.1% to 657,000 in March (+4.0%, 656,000 previously), according to the U.S. Census Bureau. The May reading was the seventh m/m gain in eight months to the highest level since February 2022. The Action Economics Forecast Survey expected sales of 680,000 new homes for May. Despite the May gain, sales have fallen 25.9% from their peak of 1.029 million in August 2020.
By region, month-on-month sales in May were widespread. Sales in the Northeast jumped 17.6% (110.5% y/y) to 40,000 in May, the second m/m gain in three months, after a 43.3% collapse to 34,000 in April. Sales in the West rebounded 17.4% (-0.6% y/y) to 175,000, the highest level since May 2022, following a 2.6% April decline to 149,000. Sales in the South rose 11.3% (22.0% y/y) to 471,000 in May, the highest level since December 2021, after having recovered 12.5% to 423,000 in April. Sales in the Midwest increased 4.1% (40.0% y/y) to 77,000, the highest level since March 2022, on top of an 8.8% April rebound to 74,000.
The median price of a new home rose 3.5% (-7.6% y/y) to $416,300 in May, the third m/m rise in four months, following an 8.9% drop to $402,400 in April. The price, however, has fallen 16.2% since its October peak of $496,800. The average sales price of a new home fell 1.7% (-6.6% y/y) to $487,300, the lowest since June 2022, after a 4.0% April decline to $495,600. These sales price data are not seasonally adjusted.
The number of unsold new homes on the market fell 0.9% (-2.9% y/y) to 428,000 in May, the six m/m fall in seven months to the lowest level since March 2022, after a 0.2% rebound to 432,000 in April. These figures were modestly below 441,000 in May 2022 but well above a low of 281,000 in October 2020. The seasonally adjusted months' supply of new homes for sale declined to 6.7 months in May, the lowest since February 2022, from 7.6 months in April. It was down from a high of 10.1 months in July 2022 but up from its record low of 3.3 months in October 2020.
The median number of months a new home stayed on the market was unchanged m/m at 2.7 months in May. The reading remained up from the record low of 1.5 months in both September and October of last year but down from a high of 5.1 months in March 2021. These figures date back to January 1975.
New home sales activity and prices are available in Haver's USECON database. The consensus expectation figure from Action Economics is available in the AS1REPNA database.
Winnie Tapasanun
AuthorMore in Author Profile »Winnie Tapasanun has been working for Haver Analytics since 2013. She has 20+ years of working in the financial services industry. As Vice President and Economic Analyst at Globicus International, Inc., a New York-based company specializing in macroeconomics and financial markets, Winnie oversaw the company’s business operations, managed financial and economic data, and wrote daily reports on macroeconomics and financial markets. Prior to working at Globicus, she was Investment Promotion Officer at the New York Office of the Thailand Board of Investment (BOI) where she wrote monthly reports on the U.S. economic outlook, wrote reports on the outlook of key U.S. industries, and assisted investors on doing business and investment in Thailand. Prior to joining the BOI, she was Adjunct Professor teaching International Political Economy/International Relations at the City College of New York. Prior to her teaching experience at the CCNY, Winnie successfully completed internships at the United Nations. Winnie holds an MA Degree from Long Island University, New York. She also did graduate studies at Columbia University in the City of New York and doctoral requirements at the Graduate Center of the City University of New York. Her areas of specialization are international political economy, macroeconomics, financial markets, political economy, international relations, and business development/business strategy. Her regional specialization includes, but not limited to, Southeast Asia and East Asia. Winnie is bilingual in English and Thai with competency in French. She loves to travel (~30 countries) to better understand each country’s unique economy, fascinating culture and people as well as the global economy as a whole.
