Single-family home sales have increased by 13% year-to-year concerning new single-family homes. In the meantime, single-family housing starts increased by 18% in May. Moreover, building permits went down by 10%, indicating that there could be a prolonged shortage of supply. Compared to 2019, home supplies that were in the process of construction dropped by 15% in 2020. According to the US Census home sales in May increased more than expected.
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Home Sales in May Up By 13% Year-to-Year
According to the US Census, sales for newly built homes increased by 13% year-to-year, which is more than expected. The housing market significantly slowed down with shutdowns brought by the pandemics in March. The recovery arriving in May is said to have surprised economists and builders alike. The US Census released a report where May 2020 increases are presented as the biggest level of recovery since May 2007. However, as housing starts are not as nearly as strong, builders are struggling to meet the demand for new homes.
The Expected Jump in Home Sales Still Not There
The biggest increase in sales data is yet to come although spring and summer are usually the busiest seasons for home sellers and home builders. Due to this case, the home sales in supplies that are in the process of the building have dropped by 15% when compared to 2019. In recent weeks, the housing demand is increasing while builders are trying to meet the demand for new single-family homes.
New Job Openings for Homebuilders
After losing nearly one million jobs in February and March as reported in April, May is showing new job openings in the industry of construction. More than 226,000 new builders have been hired in May across the US, decreasing the unemployment rate. In the meanwhile, home sales are seeing the biggest increase in the Northwest, by 45%.
