May closed with a lot of changes in the housing market, but this one struck us as one of the most alluring.
Sales of new homes increased 2.2% between the months of April and May of this year, while compared to May of last year, there was a 19.5% increase. The seasonally adjusted annual rate rose to 546,000 homes while it was only at 457,000 homes at this time last year.
These numbers were far higher than our team or anyone in the housing market even predicted. The forecasted numbers were between 505,000 and 540,000 homes but the consensus was 525,000. On a regional perspective, the sales were very divided. The Northeast lead the way with an eyebrow-raising 87.5% seasonally adjusted annual basis sales increase. Though new home sales were down 5.7% in the Midwest and down 4.3% in the South, the West saw a 13.1% month-to-month increase.
These new homes sold at a median of $282,000 with an average of $337,000 while the median was $285,600 with an average of $323,500 in May of 2014.