For the third consecutive month, sales of new single-family homes posted gains, rising 2.1 percent in May, according to housing data released Tuesday by HUD and the U.S. Census Bureau.
"Builders are reporting increased demand for new homes as buyers seek to take advantage of historically low mortgage rates while they remain so favorable," says Rick Judson, National Association of Home Builders chairman. "Consumers in markets nationwide are definitely becoming more confident about making a home purchase as firming prices and tighter inventories provide further evidence of the ongoing housing recovery."
New-homes sales moved to the fastest sales pace in May since July of 2008. Inventories also rose in May, reaching a 4.1-month supply at the current sales pace.
Regionally, sales posted double-digit increases in May by 40.7 percent in the Midwest and a 20.7 percent increase in the Northeast. In the West, new-home sales rose 3.6 percent while posting a 9 percent decrease in the South. Source: National Association of Home Builders