The US housing market showed a significant slowdown in May, with new home sales experiencing a sharp decline. According to a joint report released on June 25th by the Department of Housing and Urban Development (HUD) and the Census Bureau, sales plummeted by a considerable 13.7 percent.

The seasonally adjusted annual rate for May landed at 623,000 new single-family homes sold. This represents a substantial drop from April’s rate of 722,000 and even falls slightly below May 2024’s figure of 665,000 (a 6.3 percent decrease).

Despite the sales dip, the number of new homes available for sale saw a modest increase. The seasonally adjusted estimate at the end of May reached 507,000, marking a 1.4 percent rise from April’s 500,000 and a more significant 8.1 percent increase compared to May 2024’s 469,000. This increase in inventory could suggest further price adjustments or a potential shift in market dynamics.

Experts are closely monitoring this data for insights into the overall health of the housing market and what the future holds for potential homebuyers and sellers. The continued uncertainty and anxieties surrounding the economy are likely contributing factors to this downturn. Further analysis is needed to determine if this represents a temporary blip or a more sustained trend.