New home sales reach 7-year high across U.S.

Sales of newly built, single-family homes rose 2.2% to a seasonally adjusted annual rate of 546,000 units in May, according to newly released data from the federal Housing & Urban Redevelopment agency (HUD) and the U.S. Census Bureau.

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.”

David Crowe, NAHB’s chief economist, added: “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. The uptick in existing-home sales bodes well for builders, as it shows that the sellers are able to buy a new home.”

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.