New Home Sales Uptick in US, Reach Seven-Year High

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According to HUD and the U.S. Census Bureau, sales of newly built, single-family homes rose 2.2 percent to a seasonally adjusted annual rate of 546,000 units in May 2015. This is the highest new-home sales rate since February 2008.

"Our builders are seeing motivated buyers and the release of pent-up housing demand," said Tom Woods, chairman of the National Association of Home Builders (NAHB) and a home builder from Blue Springs, Mo. "However, builders are facing supply chain challenges, which is affecting the inventory of new homes."

"This month's new-home sales report is consistent with other government data and rising builder confidence that indicate a continual recovery of the housing market," said NAHB Chief Economist David Crowe. "The uptick in existing-home sales bodes well for builders, as it shows that the sellers are able to buy a new home."

Regionally, home sales were mixed, rising 87.5 percent in the Northeast and 13.1 percent in the West. The Midwest registered a 5.7 percent decline and the West fell 4.3 percent.

The inventory of new homes for sale was 206,000 units in May. This is a 4.5-month supply at the current sales pace.