New h⛦ome sales skyrocketed in May, as homebuyers turned to new construction amid a record-low supply🌸 of existing homes. 

New home sales jumped 12.2% in May and were up 20% year-over-year, according to the U.S. Census Bureau. May sal💎es grew🐭 at the strongest pace since February 2022, according to analysis by Oxford Economics. 

Sales increased everywhere except the Midwest by double digits, while home prices slowly started to decline. The median sales price grew month-over-month, jumping to $416,300 in May from April’s revised sale price of $402,400. Year-over-year, prices decli♛ned, with the median falling to $416,300 from $450,700 in May of 2022. 

In May, 763,000 new homes were sold, despite high mortgage rates. 澳洲幸运5官方开奖结果体彩网:New construction has stepped in to answer inventory concerns for homebuyers, while sales of existing homes have remained sluggish through the spring.

That may not be sustainable for long, given that new homes a🍷re dependent on affordable, available l𝓡abor. 

“We don't think the pace of sales can be sustained, however, and we expect new home sales to lose some momentum as the economy enters a recession and the labor market softens,” economists at Oxford Economics wrote Tuesday. 

The market ended May with approximately 6.7 months of supply on newly-built single-family homes, down from 7.6 months' supply in April. Supply fell 11.8% in May from April, while it dipped 19.3% year-over-year.

Sales increased across all U.S. regions

Sales picked up in every region of the U.S. In the Northeast, sales grew 17.6% on a month-over-month basis and were up 110.♉5% year-over-year. 

In the South, sales grew 11.3% month-over-month and were up 22% year-over-year. Sales grew 17.4% in the West month-over-month but saw a 0.6% dip from May 2022. The Midwest posted the smallest month-over-month sales growth, increasing 4.1% on a monthly basis and 40% year-over-year.