Wednesday, July 24, 2013

New Home Sales: May 2013

Yesterday, the U.S. Census Department released its monthly New Residential Home Sales Report for May showing a improvement with sales climbing a notable 8.3% from April and rising 38.1% above the level seen in May 2012 but still remaining at an historically low level of 497K SAAR units.

It's important to recognize that the inventory of new homes appears to be mounting as unsold units totaled 161K, still though near the lowest level seen in in at least 47 years while the median number of months for sale decreased to 3.9.

The monthly supply declined to 3.9 months while the median selling price increased 7.35% and the average selling price increased 8.54% from the year ago level.

The following chart show the extent of sales decline to date (click for full-larger version).