New Home Sales Up

By Liz Clinger Updated on 6/25/2012

Since mid-2010, the pace of sales in May for new single-family homes reached its highest point. New single-family home sales reached upward 7.6% from April to May, reaching an 19.8% increase since this time last year.

New single-family house median sales prices reached $234,500 in May while average sale price was $273,900.

The sale of single-family homes hit a seasonally adjusted annual rate of 369,000 over April’s 343,000 and over last year’s 308,000. By the end of May, the estimate is to reach 145,000 or a 4.7 month supply.

Chief economists for the National Association of Realtors, the popular real estate website Zillow and the National Association of Home Builders, share a common optimistic outlook on the housing market recovery. Chief economist at NAR, Lawrence Yun, commented that he expects a 10% increase in home prices or new home starts to increase by 70 to 80%. He also commented on the role of smaller builders who he feels makes up around 70% of the new home market, and need funding opened up to them.