Data released June 24 by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau show that sales of newly constructed single family homes increased by a whopping 18.6 percent in May, 2014 reaching the highest rate since May 2008. David Crowe of the the National Association of Home Builders pointed out that 2014 started very slowly but that “as job creation continues, we can expect further release of pent-up demand and continued gradual growth in the housing recovery.”
The Northeast registered the greatest percentage increase in new-home sales with 54.5 percent while the Midwest only increased 1.4 percent. The West (and California) was second with a 34 percent increase. Meanwhile, inventory of new homes essentially remained flat as builders remain cautious about over construction. It’s estimated that there remains a 4.5 month supply if the current sales pace continues.