Surging Prices for New Homes Suggest Tight Low-End Supply

Home Construction

Record prices for new U.S. homes amid a sales pickup indicate the supply of houses may be tight at the lower end of the market, pinching first-time buyers, government data showed June 23.

Highlights of New Home Sales

• Single-family home sales increased 2.9% month-over-month to 610,000 annualized pace (estimate of 590,000).

• Median sales price surged 16.8% year-over-year to a record $345,800.

• Supply of homes unchanged at 5.3 months; 268,000 new houses were on market at the end of May.

Home Construction Sam Hodgson/Bloomberg News

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