This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

New Home Sales Rose 2.1% in May

NEW YORK ( TheStreet) -- New- home sales rose by a higher-than-expected 2.1% in May.

New-home sales rose to a seasonally adjusted annual rate of 476,000 homes, according to the Census Bureau. The Bureau revised its estimate of new home sales for April to 466,000 from 454,000. Economists polled by Bloomberg expected the sale of new homes to rise to 460,000.

The report also included strong upward revisions for new home sales in February and March.

Year-over-year, new home sales are up 29%.

The seasonally adjusted estimate of new homes for sale was 161,000 representing 4.1 months of supply at the current sales pace.

Home prices, however, appear to have cooled a little in May. The median home sales price for new homes sold in May was $263,900, with the average sale price at $307,800. In April, the median home sale price was $272,600 and the average home sale price was $331,300.

Construction of new homes ground to a halt in the aftermath of the 2008 subprime crisis. In recent months, it has begun to pick up once more, but builders are facing shortages in labor and rising material costs. Builders are therefore selling larger homes targeted at the higher end of the market to recover their margins.

Of the homes sold in 2013, 32% sold in the $200,000 to $300,000 range, while 25% sold in the $300,000 to $400,000 range. Only 13% of the homes sold for less than $150,000, while 14% sold for between $150,000 and $200,000.

-- Written by Shanthi Bharatwaj in New York.

>Contact by Email.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
IYR $79.01 0.00%
XHB $36.20 0.00%
AAPL $123.25 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs