Nation’s New-Home Sales in May Climb to Best Levels Since 2008

New-home sales rose 2.2 percent in May to a seasonally adjusted annual rate of 546,000, the strongest performance since February 2008, according to the Commerce Department. Sales of new homes have surged 24 percent year to date, aided by steady job growth and favorable borrowing costs. Volume was up 87.5 percent in the Northeast and 13.1 percent in the West but fell in the Midwest and South. The median sales price was slightly lower, slipping 1 percent over the last year to $282,800. Meanwhile, the increase in demand has caused the supply of new homes to decline to a level of just 4.5 months — below five-month threshold generally considered healthy. “We expect factors like strong job growth, low rates, and rising rental costs to continue supporting this trend” of robust demand, says Tom Wind, executive vice president of home lending at Florida-based EverBank. | Read More