Overview

• New home sales fell 13.7% in May to a seasonally adjusted annual rate of 623,000 units, marking the steepest monthly decline since June 2022.
• Unsold new home inventory climbed to 507,000 units in May, the highest level since late 2007 and representing nearly ten months of supply.
• Existing home sales dipped 0.7% year-over-year in May, while pending transactions rose 1.8% but stayed near record lows.
• The median price of a new home reached $426,600 in May, up 3% from a year earlier, exacerbating affordability challenges.
• Housing starts fell nearly 10% in May to the weakest pace since mid-2020 as builders face elevated mortgage rates and higher material costs.