The Census Bureau reports New Home Sales in May were at a seasonally adjusted annual rate (SAAR) of 763 thousand.
The previous three months were revised down slightly, combined.
Sales of new single‐family houses in May 2023 were at a seasonally adjusted annual rate of 763,000, according to
estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development.
This is 12.2 percent above the revised April rate of 680,000 and is 20.0 percent above the May 2022 estimate of 636,000.
Click on graph for larger image.
The first graph shows New Home Sales vs. recessions since 1963. The dashed line is the current sales rate.
New home sales are above pre-pandemic levels.
The second graph shows New Home Months of Supply.
The all-time record high was 12.2 months of supply in January 2009. The all-time record low was 3.3 months in August 2020.
This is above the top of the normal range (about 4 to 6 months of supply is normal).
“The seasonally‐adjusted estimate of new houses for sale at the end of May was 428,000. This represents a supply of
6.7 months at the current sales rate.”
Sales were well above expectations of 657 thousand SAAR, however, sales in the three previous months were revised down slightly, combined. I’ll have more later today.