US home sales surge in May 2023, fuelled by limited inventory and strong consumer demand

Source: US Census Bureau

The housing market in the US has experienced a surge in May 2023, according to data released by the US Census Bureau and the Department of Housing and Urban Development.

Sales of new single-family houses skyrocketed to a seasonally adjusted annual rate of 763,000, marking a substantial 12.2% increase from the revised April rate of 680,000.

This growth also represents a staggering 20% rise compared to the May 2022 estimate of 636,000 units.

Additionally, the median sales price for new houses sold in May 2023 stood at US$416,300, while the average sales price reached $487,300. 

The report also reveals that the supply of new houses available for sale at the end of May was estimated to be 428,000. This represents a 6.7-month supply at the current sales rate, indicating a balanced market for prospective home buyers.

According to Lesprom, the National Association of Home Builders (NAHB) identified the lack of existing inventory as a contributing factor to this surge in sales. 

The existing single-family home market currently faces a scarcity, with only a 3-month supply available. Comparatively, the inventory of new homes constituted 31% of the total inventory in May, surpassing historical levels typically ranging from 10-15%.

Consequently, the pace of resales has experienced a decline of 20% from the previous year. In contrast, the rate of new home sales has surged by 20% from a year ago.

Source: Lesprom