New U.S. homes sold at an annual rate of 504,000 in May to mark the fastest increase in six years, the government said Tuesday. Yet the surprising gain - economists polled by MarketWatch expected a 440,000 increase - was led by a huge surge in the Northeast. The region typically has the fewest sales in the U.S. and the seasonally adjusted numbers can be particularly volatile. Just a month before in April, for instance, sales in the Northeast were the smallest in almost two years. Meanwhile, sales climbed 34% in the West and 14.2% in the South. A bounceback after a winter-induced lull may have boosted sales in the warmer spring months Sales rose just 1.4% in the Midwest, however. The median price of new homes rose 4.6% to $282,000 last month. The supply of new homes on the U.S. market dropped to 4.5 months at the current sales pace from 5.3 months in April. New home sales were 16.9% higher in May compared to one year ago. In April, however, they were 6% lower, showing how erratic the report on new home sales can be.
Source: Marketwatch
Source: Marketwatch
