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New Home Prices Set New Record

The median sales price in May was $345,800 and the average was $406,400. A year earlier the respective prices were $296,000 and $350,000. This crushes the previous record of $332,700 and also represents a record increase in the year-over-year change (+16.8% vs May 2016's median price of $296,000).

May sales were up by 2.9 percent from April to a seasonally adjusted estimate of 610,000, breaking the 600,000 mark for only the fourth time since the housing crisis began. Sales were 8.9 percent higher than in May 2016 when the estimate was 560,000.

New Home Sales

A little perspective, new home sales in April of 1963 were 605,000. In July of 1963, they were 665,000. In 1963 the population was 190 million. In 2017 the population is 320 million. New home sales are not doing well.

New Home Sales vs Price

The slope of prices vs sales tells it all. Most potential buyers cannot afford new homes.

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