Wednesday, August 6, 2025

New Home Sales in the US Show Signs of Rebound in May

Despite the economic turmoil caused by the coronavirus pandemic, it appears that some parts of the housing market are beginning to show signs of a rebound after all. Although previously owned home sales fell by 9.7% in May, new home sales on the other hand showed a rebound that many analysts were not anticipating.

According to recent data released by the US Commerce Department, new home sales increased by 16.6% in May, which translates to a seasonally adjusted annual rate of 676,000 homes sold. Given that new home sales are accounted for as soon as a contract is signed, they become a significant indicator of the housing market’s well being.

Furthermore, new home inventories began to decline in May, while housing prices increase by 1.7% on a year over year basis, which translates to an increase from an average new home price of $303,000 to $317,900. Economists polled by Reuters predicted that new home sales would only rebound by approximately 2.9% accompanied by a U-shaped recovery. However, with new home sales accounting for nearly 10% of all housing sales, the sudden rebound in May suggests the US economy is on a path to recovery.

Information for this briefing was found via Reuters, Financial Post, and US Commerce Department. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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