More new homes were sold in May as median and average sales prices also rose for these new homes. The U.S. Census Bureau and the Housing and Urban Development disclosed that 610,000 new homes were sold in May at a median sales price of $345,000.
New Home Sales and Supply
The seasonally adjusted volume of new homes sold in May represented a 2.9-percent increase from April’s revised figure 593,000. On a year-over-year basis, the change compared with May 2016’s 560,000 was 8.9%.
If the May 2017 new residential sales rate were broken down by region, the South took the lead followed by the West, Midwest and Northeast. The volume of new privately-owned houses sold during the period, including any percentage drop or increase from April, is presented in the table.
Data from the US Census Bureau/HUD
| Region |
New Home Sold |
Percentage Change (Between May 2017 and April 2017) |
| Northeast | 33 | (10.8%) |
| Midwest | 55 | (25.7%) |
| South | 360 | 6.2% |
| West | 162 | 13.3% |
At the end of May, there were 268,000 new home units available for sale. Given the current pace of new home sales, this seasonally-adjusted supply is expected to cover 5.3 months.
Home Prices for New Homes, Existing Homes
The median sales price of new homes sold in May also jumped from $310,200 in April to $345,800 in May. The average sales price of May new-home sales also spiked to $406,400 from $367,700 in April.
Changes in new home sales, prices and supply are tracked by the U.S. Census Bureau and HUD in their monthly new residential sales.
A separate, broader home price index also recorded surging home prices back in April. Based on the Federal Housing Finance Authority’s House Price Index (HPI), home prices rose by 0.7% in April compared to March, and by 6.8% from a year ago.
The HPI measures changes in prices of single-family homes whose mortgages were sold to or guaranteed by Fannie Mae and Freddie Mac. These homes have been the subject of repeated sales or refinancing.
Justin McHood is a managing partner at Suited Connector and has been recognized by national media outlets as a financial expert for more than a decade.
