Sales of new single-family houses in May 2024 were at a seasonally adjusted annual rate of 619,000, according to estimates from the U.S. Census Bureau and the Department of Housing and Urban Development (HUD).
“Today’s new home sales report captures the fatigue of buyers,” says Ali Wolf, chief economist for Zonda. “After years of consistent home price appreciation and high home prices, some consumers are saying enough is enough.”
The May estimate represents a 11.3% decline from the revised April 2024 rate and a 16.5% decrease from the May 2023 rate of 741,000.
“Families are delaying purchases of new homes because of high mortgage rates. The average rate of a 30-year mortgage was 7.06% in May. In May 2023, the average rate was 6.43%,” says Holden Lewis, home expert at NerdWallet. “Sales will rebound when mortgage rates drop to 6.5% or lower.”
The median sales price of new houses sold in May 2024 was $417,400 while the average sales price was $520,000.
“We are seeing home builders get more aggressive on incentives as the year progresses,” Wolf says. “These incentives are helping, but can’t easily be utilized by smaller and more regional builders.”
The seasonally-adjusted estimate of new houses for sale at the end of May was 481,000, which represents a supply of 9.3 months at the current sales rate, according to the Census Bureau and HUD.
