New Home Sales Much Better Than Estimates

- New Home Sales in May rose to 1234K versus estimates of 1145K and 1180K in April.

BOTTOM LINE: Sales of new homes in the US unexpectedly rose in May to the highest level this year, Bloomberg reported. The number of unsold new homes decreased to a 5.5-month supply at the current sales pace versus 5.8-months worth the prior month. The median price of a new home rose 3.1% over the last 12 months to $235,300. Sales increased 6% in the South, 5.3% in the West and 2.7% in the Midwest. Sales fell 7.9% in the Northeast. Sales of new home have slowed 10% during the first four months of this year. This report is more evidence that housing is just slowing to more healthy sustainable levels, rather than the “hard-land” that bears suggest.