Sales of new single‐family homes in May were at a seasonally adjusted annual rate of 769,000, according to estimates released by the Census Bureau and the Department of Housing and Urban Development. This is 5.9% below the revised April rate of 817,000 but is 9.2% above the May 2020 estimate of 704,000.
“The May seasonally adjusted annual rate was the lowest in a year, due to builders slowing sales as a consequence of higher material costs and declining availability of labor, material, and lots,” says Robert Dietz, NAHB’s chief economist, in his Eye On Housing post.
The median sales price of new houses sold in May was $374,400, while the average sales price was $430,600.
The seasonally adjusted estimate of new homes for sale was 330,000 at the end of May, representing a 5.1-month supply at the current sales rate.
“Residential demand continues to be supported by low interest rates, a renewed consumer focus on the importance of housing, and solid demand in lower-density markets like suburbs and exurbs,” continues Dietz. “However, higher building costs, longer delivery times, and general unpredictability in the residential construction supply chain are having measurable impacts on new-home prices.”
