New home sales continue to climb, rising to 476,000 completed transactions in May, according to government data.
When evaluating single-family homes specifically, sales inched up 2.1% in May, above the revised April rate of 466,000 units.
Last month’s sales are 29% above the May 2012 estimate of 369,000 sales, the Census Bureau and the Department of Housing and Urban Development noted in a report released Tuesday.
"The housing market is without question surging. Last week's report on existing home sales was very strong as is today's report for new home sales which came in at a stronger-than-expected annual rate of 476,000 in May," noted analysts at Econoday.
The median sales price of new homes sold in May dropped slightly from $271,600 to $263,900 in the most recent month. May’s average sales price was $307,800.
At the end of May, the number of new homes for sale increased to 161,000 units, compared to 156,000 units in April. This represents a 4.1-month supply of homes at today’s sales pace, up slightly from April’s 4-month supply.
Supply is moving higher as builders pick up the pace, noted analysts at Econoday. "Rising supply will help boost sales in the months ahead."
They added, "The housing sector is now the bread-and-butter strength of the economy. Next major indicator on housing will be Thursday with the pending sales report for existing homes."