It’s been a main topic of many of our recent publications…and it apparently holds true. The gains shown from the latest NAHB’s forecast remain consistent that new home sales will be a leading sector in an emerging economic recovery.
New home sales jumped in May, as housing demand was supported by low interest rates, a renewed household focus on housing, and rising demand in lower-density markets. Census and HUD estimated new home sales in May at a 676,000 seasonally adjusted annual pace, a 17% gain over April. However, April pace was 25% lower than the peak, pre-recession rate set in January.
The gains for new home sales are consistent with the NAHB forecast that housing will be a leading sector in an emerging economic recovery. Consider that despite double-digit unemployment, new home sales are estimated to be 1.9% higher, through May, than the first five months of 2019.
Great news, right? Additionally, new home sale median price increased in May to $317,900, an almost 2% gain year-over-year.
The count of completed ready-to-occupy new homes is 78,000 homes nationwide and the share of not started homes SOLD increased to 30%, which a positive indicator for future housing starts.
2020 New Home Sale: Median Price Nationwide = $317,900
Source: Eye on Housing, NAHB
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