New home sales skyrocketed in May, a🍬s 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 sales grew at the strongest pace sinc🐓e February 2022, according to analysis by Oxford Economics. 

Sales increased everywhere except the Midwest by double digits, while home prices slowly started to d✅ecline. 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 declined, wi༺th 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开奖号码历史查询:New construction has stepped in to answer inventory concerns for homebuyers, while sales of existing homes have remained sluggish through the spring.

That m𝄹ay not be sustainable for long, given that new homes are dependent on affordable😼, available labor. 

“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.