New Home Sales Now at Fastest Pace For Five Years

For the third consecutive month, sales of new single-family homes increased, up by 2.1 percent in May, according to housing data by HUD and the U.S. Census Bureau.

Builders are seeing increased demand for new homes with buyers looking to take advantage of low mortgage rates while they can. People are more confident about purchasing a home as price increases are sustained and inventories remain low.

New-homes sales are now at the fastest pace since July of 2008. Inventories also rose in May, hitting 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