US new-home sales fell 7.8% in May

WASHINGTON — Sales of new U.S. homes slumped 7.8% in May, as sales plunged in the pricier Northeastern and Western markets.

The Commerce Department said Tuesday that new homes sold at a seasonally adjusted annual rate of 626,000 in May, down from 679,000 in April. During the first five months of the year, purchases of new homes have fallen 3.7% compared to the same period in 2018.

article continues below

Lower mortgage rates and a healthy job market have yet to unleash more home-buying. Sales of new homes plummeted 35.9% in the West and 17.6% in the Northeast. New-home sales rose 4.9% in the South and 6.3% in the Midwest, which are generally more affordable markets.

The median sales price of a new home fell 2.7% from a year ago to $308,000.

Still, there are signs that sales could recover.

Sales of existing homes — which are the bulk of the market — rebounded in May. They increased 2.5% to a seasonally adjusted annual rate of 5.34 million, evidence that lower mortgage rates might ultimately improve buying.

© Copyright Battlefords News Optimist

July 15, 2019 POLL

Valleyview Towers is at the centre of a controversy about housing. What do you think?

or  view results

Sign Up for Our Newsletter!

Popular News Optimist

Community Event Calendar


Find out what's happening in your community and submit your own local events.