New Home Sales Fall

New home sales in the U.S. fell to the lowest pace in a year due to the high costs and uncertain availability of building materials, lots, and labour, says the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Sales of newly built, single-family homes fell 5.9 per cent in May to a 769,000 seasonally adjusted annual rate. The May number follows significant downward revisions to the April estimate and previous months’ readings. Inventory remains low at a 5.1-month supply, with 330,000 new single-family homes for sale, 3.8 per cent lower than May 2020. Supply-side challenges remain an issue, with the count of new homes sold that had not started construction, up 76 per cent over the last year. The count of new homes sold that are completed and ready to occupy is down 33 per cent.