Sales of newly built single-family homes are skyrocketing, according to new numbers from the U.S. Census Bureau and the Department of Housing and Urban Development. In fact, May estimates show sales up 20 percent from where they were last year at the same time and 12.2 percent higher than they were in April. The gains surpassed economists' expectations and continued an upward trend for the new home market, furthering evidence that buyers are ready and looking to make a move.
So why is the market for new homes so much hotter than the existing-home market?
The simple answer is supply. There is a lack of previously owned homes available for sale right now and it's pushing buyers to consider newly built options. The increased demand has helped home builders too, as housing starts also surged during the month, seeing their biggest increase in more than three decades.
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