U.S. New Home Sales Jump 7.6% To 369,000 Units In May

U.S. new home sales jumped by 7.6% over April to 369,000 units in May, which was stronger than the 346,000 unit rate expected by consensus and the best level since April 2010. New home sales are now 19.8% above the 308,000 unit rate seen in May 2011. On a month-over-month basis, the jump in total sales was driven by a 36.7% spike in Northeast sales and a 12.7% gain in the South. In contrast, the Midwest and West saw 10.6% and 3.5% month-over-month declines, respectively. On a year-over-year basis, all regions saw gains, but by varying degrees. Northeast sales were up 127.8% over last May, while the Midwest is up by just 2.4%. The South and West are up 16.6% and 10.8%, respectively, over last May. The inventory of homes for sale rose to 145,000 units from 144,000 units in April, which represents a supply of 4.7 months at the current sales price. That’s down from 5.0 months in April and the double-digit gains seen in 2009. The larger than expected bounce in new home sales is good news, it will likely be overlooked by Eurozone concerns.