Quantcast
Home / Construction / US new-house sales fall 7.8% in May

US new-house sales fall 7.8% in May

A worker carries supplies on June 19 for a new house in a Brandon, Mississippi. The U.S. Department of Commerce reported Tuesday that sales of new houses Sales of new U.S. houses slumped by 7.8% in May. (AP Photo/Rogelio V. Solis)

A worker carries supplies on June 19 for a new house in a Brandon, Mississippi. The U.S. Department of Commerce reported Tuesday that sales of new houses Sales of new U.S. houses slumped by 7.8% in May. (AP Photo/Rogelio V. Solis)

By JOSH BOAK
AP Economics Writer

WASHINGTON (AP) — Sales of new U.S. houses slumped by 7.8% in May, as sales plunged in the pricier Northeastern and Western markets.

The Commerce Department said on Tuesday that new houses sold at a seasonally adjusted annual rate of 626,000 in May, down from 679,000 in April. During the first five months of the year, purchases of new homes have fallen by 3.7% below the rate they occurred at in the same period in 2018.

Lower mortgage rates and a strong job market have yet to unleash more house buying. Sales of new houses plummeted by 35.9% in the West and 17.6% in the Northeast. New-home sales rose 4.9% in the South and 6.3% in the Midwest, which are generally more affordable markets.

The median sales price of a new home fell by 2.7% from a year ago, to $308,000.

Still, there are signs that sales could recover.

Sales of existing houses — which are the bulk of the market — rebounded in May. They increased 2.5% to a seasonally adjusted annual rate of 5.34 million, evidence that lower mortgage rates might ultimately lead to increased buying.

Copyright 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Leave a Reply

Your email address will not be published. Required fields are marked *

*