New Home Buyers Lead Sales Rebound

2020-06-25T16:21:17+00:00

New home sales are a good indicator of what’s currently happening in the housing market. Rather than at closing like existing-home sales, they’re counted when a contract to buy is signed. That’s also why new numbers from the U.S. Census Bureau and the Department of Housing and Urban Development are good news for the market’s recovery.

Unexpected Sales Rebound

Sales of newly-built single-family homes rose 16.6 percent in May from the month before. The numbers are now 12.7 percent higher than they were last year at the same time. Pleasantly, the strength of the rebound was unexpected. While economists predicted gains, they thought sales would rise just 2.9 percent month-over-month.

Strong Numbers for May

The unexpectedly strong improvements indicated that home buyers are much more active in May despite being sidelined by the coronavirus shutdowns in March and April. Along with other recent data showing signs of a rebound, May’s new-home sales numbers are reason to be optimistic that the housing market’s recovery will continue to gain strength as the summer goes on. Click on the link to read more (source).

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