Sales of newly built single-family homes declined sharply in May, according to the latest data from the U.S. Census Bureau and the Department of Housing and Urban Development. The report shows a 13.7% drop from April and a 6.3% decrease compared to May of last year, falling short of economists’ expectations.
Regionally, the results were mixed:
- South: Sales plunged 21%, contributing significantly to the national decline.
- Northeast: In contrast, sales surged 32.1% month-over-month.
- West and Midwest: Both regions experienced modest, single-digit declines.
Despite the slowdown in sales, the inventory of unsold new homes rose to its highest level in nearly two decades. This growing supply could benefit summer homebuyers, as builders may offer incentives and discounts to move existing stock—particularly completed homes ready for immediate occupancy.
Source: Reuters
