Home sales rise in May
Sales of new single-family homes shot up 7.6 percent in May, to a seasonally adjusted 369,000-unit annual rate, according to government statistics.
"The relatively strong increase in new-home sales this May is an indication that more potential home buyers are being drawn to the market by today's excellent mortgage rates as well as firming conditions in some local economies," said Barry Rutenberg, chairman of the National Association of Home Builders, and a home builder from Gainesville, Fla. "In addition, more people are recognizing the benefits that new homes can provide beyond what's available in the existing housing stock in terms of energy efficiency, updated technology and other features."
The numbers were expected, said David Crowe, the NAHB’s chief economist.
"May's sales report is a welcome sign that the market has returned to a more solid growth path following lackluster reports in March and April, and is in keeping with our expectations for continued, steady improvement through the end of this year," Crowe said. "While the current sales rate remains low by historical standards and continues to be constrained by challenges related to credit availability for builders and faulty appraisals, the ongoing decline in the month's supply of new homes will necessitate additional construction in certain markets going forward."