New single-family home sales in May 2023 totaled 763,000 seasonally adjusted units, 20% above May 2022 levels, according to U.S. Census Bureau data.
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New home sales jumped 20 percent in May from a year earlier as homebuyers continued to seek out new homes in a tight market.
according to data New single-family home sales in May 2023 will reach 763,000 seasonally adjusted units, up 20% from May 2022 levels and 12.2 from April, the U.S. Census Bureau said on Tuesday. % increased.
Nicole Bachaux | Jiro
“Buyers are looking for properties and affordability this spring shopping season, both of which can be found in new construction and many builders are looking for incentives,” said Nicole Bachaux, senior economist at Zillow, in a statement. We offer fresh inventory,” he said. “This has resulted in higher sales, increased confidence among home builders and a resurgence in the new construction industry.”
that’s right, June Builder confidence turned into positive territory for the first time in 11 months, as home builders confirmed their products were once again meeting strong demand.
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Robert Dietz National Association of Home Builders
A statement by Robert Dietz, chief economist at the National Association of Home Builders, added that “the lack of available resale homes for just three months’ supply is supporting demand for new homes.” rice field. New home inventory in May was 31% of total inventory. Historically, usually he is 10%-15%. “
The median sales price of new homes sold in May was $416,300, down from the median sales price of $449,000 in May 2022. The average selling price was $487,300, down from the May 2022 average of $511,400.
One economist blamed the fall in prices on an increase in completed homes. “The surge in completed homes means builders are setting their selling prices. In May, 48% of new homes sold for less than $400,000, compared with 39% a year ago. was,” said Holden Lewis, a home and mortgage expert at NerdWallet, in a statement.
The increase in demand for new homes comes as the stalemate in mortgage rates draws new inventory out of the housing market.
Over 90 percent of homeowners taking out mortgages have interest rates below 6 percent, while over 80 percent avail interest rates below 5 percent. The average 30-year fixed mortgage rate was 6.43% in May, up from 5.23% in the same period last year and will hit a record low of 2.65% in 2021.
Homeowners with low mortgage rates have been found to be reluctant to list their homes or fight 20 years of high mortgage rates unless absolutely necessary, resulting in The level is the lowest in 10 years.
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