US New Home Sales Soar In May, After Huge Downward Revision

Following the bloodbath in existing home sales (drastically worse than expected), analysts remained confident that new home sales will continue to rebound in May (after rebounding first in April, unlike pending- and existing-home sales).

After March saw the biggest drop since July 2013, new home sales have massively rebounded (up 16.6% MoM vs +2.7% exp), pushing YoY back into the green - up 12.7% YoY...

Source: Bloomberg

We do note that April data was revised notably weaker (-5.2% MoM vs +0.6% initial)...

...from 623k SAAR top 580k SAAR...

The Midwest was the only region to suffer a drop in new home sales in May (-6.4% MoM) as Northeqast soared 45.5% MoM, West +29.0% MoM, and South +15.2% MoM.

Homebuilder sentiment about future sales has v-shape-recovered...

Source: Bloomberg

Finally, we note that inventories fell and median new home price rose 1.7% y/y to $317,900 up from $303,000 last month (lowest since Feb 2017...

Was this the "pent-up" demand from peak-selling period? If so, this "V" may not last as long as homebuilders and homesellers hope.