Sales of new single-family houses in May 2014 were at a seasonally adjusted annual rate of 504,000, 18.6 percent above the revised April rate of 425,000 according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. That figure is and is 16.9 percent above the May 2013 estimate of 431,000.
The median sales price of new houses sold in May 2014 was $282,000; the average sales price was $319,200. The seasonally adjusted estimate of new houses for sale at the end of May was 189,000. This represents a supply of 4.5 months at the current sales rate.
"These numbers are in line with our recent builder surveys, which indicate that more consumers are getting off the fence and coming back into the marketplace," said Kevin Kelly, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Wilmington, Del.
"This increase is a welcome sign after a slow start to 2014," said NAHB Chief Economist David Crowe. "As job creation continues, we can expect further release of pent-up demand and continued gradual growth in the housing recovery."
Regionally, new-home sales were up across the board. Sales rose 54.5 percent in the Northeast, 34 percent in the West, 14.2 percent in the South and 1.4 percent in the Midwest.
The inventory of new homes for sale held steady at 189,000 units in May. This is a 4.5-month supply at the current sales pace.