FOR IMMEDIATE RELEASE
CONTACT: Paul Lopez
202-266-8409
plopez@nahb.com www. nahb.com
NEW-HOME SALES RISE IN MAY
WASHINGTON, June 26 - Sales of new single-family homes rose 4.6
percent to a seasonally adjusted, annual rate of 1.23 million
units in May from a downwardly revised number in the previous
month, according to figures reported by the U.S. Census Department
today.
"If the sales gain in today's report holds true, it's likely due
at least partly to the extra efforts that builders are making to
attract the many potential buyers who are still out there,"
noted David Pressly, president of the National Association of Home
Builders (NAHB) and a home builder from Statesville, N.C. "Many
are stepping up incentives or trimming prices to help maintain
sales volume."
"That said, the May sales number seems a bit too good to be
true, especially in view of the wide confidence intervals around
these statistics. Furthermore, the latest results of NAHB's builder
surveys indicate weaker demand for homes coinciding with higher
interest rates, deepening affordability issues and a retreat of
investors/speculators from the market," added NAHB Chief
Economist David Seiders. "We don't think the cooling process for
housing is over yet, and we wouldn't be surprised to see a downward
revision to May's numbers as well as some decline in coming
months."
Three out of four regions posted gains in the Census figures for
new-home sales in May. The South had the strongest gain, of 6
percent, followed by the West's 5.3 percent increase and the
Midwest's 2.7 percent gain. Sales fell nearly 8 percent in the
Northeast.
Meanwhile, the inventory of new homes for sale declined slightly
in May to 556,000 units, equivalent to a 5.5-month supply at the
current sales pace.
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