New Home sales Slightly worst than expected

• New home sales dropped in the South more offsetting notable increases in sales in the Northeast and Midwest.
• Report showed that new home sales dropped –0.6% on an annual rate to 342,000 from a revised 355,000 in April.
• Economist had expected a 2.3% jump to 365,000.
• The decrease was contributed by the 8.5% decrease in new home sales in the South.
• Sales in the region fell to 184,000 YoY in May  from 201,000 in April.
• By region:
• Northeast +28.6% or 27,000 YoY
• Midwest +18.6% or 51,000 YoY
• West +1.3% or or 80,000 YoY
• South –8.5% or 184,000 YoY
• Median sales price of new houses sold in May was $221,600 up 4.2% from the previous month but down 3.4% compared to the same month last year.
• New home inventories fell 2.3% to 292,000 from 299,000 in April.
• Representing a 10.2 months supply at the current sales rate, down from 10.4 month supply in the previous month. 

"New homes make up a small part of the market where existing homes with foreclosures are making up a bigger and bigger portion, but the drop in months supply and rise in prices are the focus of homebuilder investors.” - Peter Boockvar (Equity Strategist Miller Tabak)

Source: RTT News