Newsroom
New home sales ‘rebound modestly’ in May
New home sales grew 10.7 percent in May to 696,000 annualized units, while April saw an upward revision of 38,000 units. Compared to last year, May sales were 5.9 percent lower. NAFCU Chief Economist and Vice President of Research Curt Long analyzes the data in the latest Macro Data Flash report.
“From a high-level view, homebuilder stock is in decent shape, with 7.7 months of inventory on hand. But that is deceptive, as an abnormally large share of that inventory is unfinished due to ongoing supply chain problems," said Long.
Based on current month sales, there were 7.7 months of supply in May, down by 0.6 months from April. Unsold homes left on the market increased by 7,000 homes to 444,000, representing a 42.6 percent increase from year-ago inventory levels.
"To wit, the total number of new homes for sale at the end of the month grew by 1.6 percent in May to 444,000, but only 37,000 of those homes are complete,” added Long. " Furthermore, sales may be getting a temporary boost as builders – who had throttled sales in recent months in an environment of rapid price inflation – begin to release that inventory."
Results were mixed across the Census regions in May. Sales in the West rose 39.3 percent, followed by the South (12.8 percent). Meanwhile, sales in the Northeast fell by 51.1 percent, and in the Midwest by 18.3 percent.
Of note, the median home price, non-seasonally adjusted, fell by 1.3 percent in May to $449,000, which is 15.0 percent higher than last year.
“The National Association of Homebuilders/Wells Fargo Housing Market Index has declined every month in 2022, and housing starts in May fell to their lowest level since April 2021," concluded Long. “NAFCU expects new home sales to be muted in the near term due to rising rates and economic uncertainty.”
For more economic updates from NAFCU's award-winning research team, view all of NAFCU's Macro Data Flash reports.
Share This
Related Resources
Add to Calendar 2024-04-24 14:00:00 2024-04-24 14:00:00 Optimize Liquidity, Maximize Loan Growth: The Network Lending Advantage About The Webinar Join us to learn more about network lending, a cooperative model allowing credit unions to optimize liquidity and achieve loan growth. Discover how credit unions can participate in loan pools with other institutions, allowing them to diversify portfolios, access loans with potentially lower risk and higher yields, and expand lending capacity without necessarily needing a surge in deposits. Delve into how credit unions can pool their resources, set common underwriting and pricing standards, and collectively originate, buy, and sell loans to optimize liquidity management. Hear from your peers about best practices, case studies, and practical strategies to harness the full potential of network lending and how it's helped their credit unions. Don't miss this valuable opportunity to learn how to strengthen your credit union's position in today’s competitive environment. Key Takeaways: How network lending differs from traditional lending The benefits of participating in loan pools with other credit unions How credit unions can set common underwriting and pricing standards and collectively originate, buy and sell loans to optimize liquidity management Why network lending is critical to loan growth Watch On-Demand Web NAFCU digital@nafcu.org America/New_York public
Optimize Liquidity, Maximize Loan Growth: The Network Lending Advantage
preferred partner
LendKey
Webinar
Add to Calendar 2024-04-23 14:00:00 2024-04-23 14:00:00 Monitoring the Latest Litigation Risks Credit unions’ operations pose litigation risks, with more of these cases being filed as class action lawsuits. In this Monitoring the Latest Litigation Risks for Credit Unions webinar, you’ll review some of the specific kinds of lawsuits impacting credit unions and what potential claims could be on the horizon. You’ll also examine some options for mitigating risks. Key Takeaways Review the current lawsuit trends. Understand the potential claims risks Explore options for mitigating risks. Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until April 23, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCCOs NCRMs Compliance and risk titles Education Credits NCRMs will recieve 1.0 CEUs for participating in this webinar NCCOs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public
Monitoring the Latest Litigation Risks
Credits: NCCO, NCRM
Webinar
Add to Calendar 2024-04-23 09:00:00 2024-04-23 09:00:00 Operational Agility: Key Factors for Success in 2024 and Beyond Listen On: Key Takeaways: [02:34] A lot of people think of fraud losses and they are very mindful of what that means for their organization and their bottom line but we are thinking about it from a cost perspective beyond that. [06:38] When you should engage has a lot to do with how long it would take to potentially replace your current service provider. [10:45] Sidecar is not your primary core solution but it is something that allows you to go to market maybe under a different brand or different set of technology. [15:21] Focus on the tech stack maybe a little bit more than you used to. Enable that tech stack to allow you to be agile going forward and you will be able to focus a lot more on the member than running an IT shop Download SRM's Focus on Operational Agility to Achieve Success in 2024 Report Web NAFCU digital@nafcu.org America/New_York public
Operational Agility: Key Factors for Success in 2024 and Beyond
preferred partner
Strategic Resource Management
Podcast
Resiliency In Your Incident Response Plan
Cybersecurity
preferred partner
DefenseStorm
Blog Post
Get daily updates.
Subscribe to NAFCU today.