Sales for new single-family homes are on the decline. Last month, sales dropped by 13.7% compared to April. This brought sales down from 722,000 in April to 623,000 in May, according to newly released data from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.
New home sales in May were also 6.3% lower than the year prior in May 2024.
Rising housing costs likely contributed to the decline. According to the census data, the average new home price in May was 2.2% higher than in April at $522,200 compared to April’s $511,200. Last month’s average sale price was also 4.6% higher than May 2024 when the average price was $499,300.
The month ended with a seasonally-adjusted estimate of 507,000 new homes on the market, which is 1.4% higher than April’s estimate of 500,000. Last month was 8.1% higher than last May when 469,000 new homes were estimated to be for sale.
Based on the current rate, May’s end-of-month estimate of new homes for sale represents 9.8 months worth of supply, which is 18.1% higher than April and 15.3% higher than May 2024.