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New Home Sales – May 2015

New home sales rose 2.2 percent in May to an annual rate of 546,000. Add to this is a 27,000 upward revision to the two prior months with April now standing at 534,000 for a big 8.1 percent monthly gain.

The surge in sales is making for a strong seller’s market with supply relative to sales down to a very thin 4.5 months vs 4.6 months in April. Total new homes on the market stand unchanged at 206,000. The lack of supply risks becoming acute and will doubtlessly speed up construction activity led by permits which, in data posted last week, have been jumping.

Lack of supply will prove to be a positive for sales prices, which however, are down in the latest report, 2.9 percent lower to a median $282,800. Year-on-year, the median price is down 1.0 percent vs the year-on-year sales gain of 19.5 percent in a mismatch that points to price acceleration ahead.

Regional sales data show a strong 13.1 percent rise in the West where year-on-year sales are up 25.5 percent. The South, which is larger than all the other regions combined in this report, has the strongest year-on-year rate at 33.3 percent though monthly sales in May dipped 4.3 percent. Sales have been soft in both the Northeast and Midwest where year-on-year rates are in the negative column though the Northeast is showing monthly strength in this report.

By |2015-06-23T15:52:54+00:00June 23rd, 2015|Categories: Leading|0 Comments

About the Author:

Bryan Sanford is Vice President and Investment Officer of Charter Trust Company. He joined the firm in 2009 and is based in our Concord NH office. Mr. Sanford received his Bachelors of Science degree from the University of New Hampshire, Durham. Mr. Sanford has held the FINRA Series 7 license. Prior to joining Charter Trust, Mr. Sanford served in the United States Marine Corps as an infantryman. He participated in Operation Iraqi Freedom, touring in Fallujah, Iraq.

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