A new home sales spike in the South drove overall sales 6.7 percent higher than the month before, according to new numbers from the U.S. Census Bureau and the Department of Housing and Urban Development. Sales were down or flat in the West, Northeast, and Midwest, but, in the South, were up nearly 18 percent from the previous month. Because of the surge, new home sales are now 14 percent higher than they were at the same time last year. Part of the reason for the improvement is the fact that there are fewer existing homes available for sale than is typical. With previously owned home inventory low, buyers are looking to new homes for additional choices. Fortunately for those buyers, the May report also showed that new home prices fell last month. In fact, the median sales price of new houses sold in May dropped 3.3 percent from one year earlier to $313,000. The average sales price was $368,500. Though still higher than prices for existing homes, new home prices are now at their lowest level in a year. More here.
