May New Home Sales Increase

May new home sales increased 7.6% from April to 369,000. This is the highest level since April 2010. Year-over-year, new home sales are up 19.8%. New home inventories also fell to a supply of 4.7 months, the lowest level since October 2005.

The New Home Sales report shows the number of newly constructed homes with a committed sale during the month. It is compiled through nationwide survey of 10,000 builders/owners of 15,000 building projects and through sampling of permit-issuing offices, as well as land not covered by building permits. The data is timely and is used in conjunction with the existing home sales release from the National Association of Realtors. The level of new home sales indicates housing market trends, and economic momentum signaling consumer purchases of furniture and appliances. Simply, the volume of sales indicates housing demand.