U.S. new home sales had some sizzle in May, rising for the 2nd consecutive month. Sales grew 2.2% in the month to 546,000 units annualized, the highest since February 2008. There were sizeable upward revisions to the three months prior.......totalling 34,000.
Taken along with sales of existing homes fared in May, and that is a pretty good story on housing that is unfolding. Inventories were unchanged in the month, and the y/y trend has slowed to +6.2%, the smallest increase in over a couple of years. Along with the jump in sales, this took the months' supply of new homes available for sale to 4.5, the lowest since mid-2013. And, it speaks to some of the results from a few homebuilders lately, who have reported higher orders.
"Total home sales (new and existing) are at their highest level since June 2007. Although the current level of sales is still far from the 700,000 level that is considered healthy, there is still room to move higher." says BMO Capital Markets
