Sales of new single-family homes in the United States fell 7.3 percent in May from the previous month and fell to their lowest level in four months, the US Census Bureau announced.
Sales came in at a seasonally adjusted annual rate of 580,000 units, well below market expectations of 640,000 homes and down from April’s revised 626,000 units, Trading Economics reports.
Analysts estimate that higher interest rates on mortgage loans continued to weigh on the real estate market and reduce buyers’ interest in buying new homes.
Regionally, the largest decline was recorded in the US West, where sales decreased by 26.9 percent, while in the South, the largest US real estate market, it fell by 4.1 percent.
At the same time, the northeastern part of the country recorded a three percent increase in sales, while in the Midwest, sales increased by 16.2 percent.
The data also show that the supply of new houses continued to grow.
There were 496,000 new housing units on the market in May, which is enough inventory for 10.3 months of sales at current rates, the most since the 2009 global financial crisis.
The median price of new homes sold increased to $424,900, from $416,500 in April, while remaining almost unchanged compared to the same month last year.
The latest data indicate that the US real estate market continues to suffer the consequences of high borrowing costs, despite a gradual increase in the supply of housing.
