Share
WASHINGTON — Sales of new homes rose a surprisingly strong 16.6% in May with the reopening of major parts of the country potentially fueling activity in the housing market.
The Commerce Department reported Tuesday that sales of new single-family homes rose to a seasonally adjusted annual rate of 676,000 last month.
That was a much better performance than expected. Many economists had forecast that sales would fall in May.
The new home sales numbers come just one day after the U.S. reported a 9.7% plunge in May sales of existing homes to an annual rate of 3.91 million, the slowest pace in nearly a decade.
There are hopes that the housing slump that occurred with the virus shutdowns could be coming to an end, though the millions of jobs lost to the pandemic could impede any rebound.
Median Price of New Home Rose 4.9% to $317,900 in May
Nancy Vanden Houten, lead U.S. economist with Oxford Economics, said she expected a modest recovery in sales in coming months following the big declines in the first quarter but she still expects a decline overall this year.
“The slow recovery in the labor market will limit the upside of any rebound in the housing market,” she said.
The median price of a new home rose 4.9% to $317,900 in May after falling by 8.7% in April, a drop that was attributed to heavy discounting by builders in the midst of the coronavirus shutdowns.
The big sales rebound left activity in May 12.7% higher than a year ago.
RELATED TOPICS:
Trump Calls on ‘Highly Conflicted’ Intel CEO to Resign Over China Ties
27 minutes ago
Fresno Man Who Drugged and Sexually Abused Minors Sentenced to 53 Years to Life
15 hours ago
Clovis Police Arrest Four in Narcotics Bust After Five-Month Investigation
16 hours ago
Overturned Big Rig Backs Up Highway 99 Traffic in Fresno
17 hours ago
Fresno Police Search for Robbery Suspect Near Blackstone Avenue
17 hours ago
Trump Says US Will Charge Tariff of About 100% on Semiconductor Imports
17 hours ago
Trump Weighs Getting Involved in New York City Mayor Race
18 hours ago
Apple Commits Additional $100 Billion to US Investments
18 hours ago

Nearly 12,000 Children Under Five in Gaza Have Acute Malnutrition, Says WHO

Trump to Sign Order Opening Way for Alternative Assets in 401(K)S, Official Says

Trump Calls on ‘Highly Conflicted’ Intel CEO to Resign Over China Ties

Fresno Man Who Drugged and Sexually Abused Minors Sentenced to 53 Years to Life

Clovis Police Arrest Four in Narcotics Bust After Five-Month Investigation
