Jun
25

New Home Sales Jump 7.6 Percent in May

June 25, 2012

New Home SoldThe National Association of Home Builders (NAHB) announced today that new home sales increased 7.6 percent in May. This marks the highest level since April 2010.

The rise in sales, representing a seasonably adjusted annual rate of 369,000 newly built, single-family homes, is a strong indication that the housing market has some forward momentum finally coming its way.

“The relatively strong increase in new-home sales this May is an indication that more potential home buyers are being drawn to the market by today’s excellent mortgage rates as well as firming conditions in some local economies,” said Barry Rutenberg, chairman of the National Association of Home Builders (NAHB). “In addition, more people are recognizing the benefits that new homes can provide beyond what’s available in the existing housing stock in terms of energy efficiency, updated technology and other features.”

New-home sales were up and down regionally for the month of May. The Northeast and South saw gains of 36.7 percent and 12.7 percent, respectively. On the other hand, the Midwest and West witnessed declines of 10.6 percent and 3.5 percent.

“May’s sales report is a welcome sign that the market has returned to a more solid growth path following lackluster reports in March and April, and is in keeping with our expectations for continued, steady improvement through the end of this year,” said NAHB Chief Economist David Crowe. “While the current sales rate remains low by historical standards and continues to be constrained by challenges related to credit availability for builders and faulty appraisals, the ongoing decline in the month’s supply of new homes will necessitate additional construction in certain markets going forward.”

The inventory of new homes remained steady at 145,000 units in May. This amounts to a 4.7-month supply of homes at the present sales pace.

How many of our Chicagoland readers are planning on buying a home this summer?

Categories: NAHB, New Homes

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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