New Home Sales, which measures signed contracts on new homes, rose 12% in May to a 763,000 unit annualized pace, which was much stronger than estimates looking for a small decline. Sales are now up 20% year over year. Builders are selling more and getting more traffic due to the lack of existing homes for sale. There were 428,000 new homes for sale at the end of May, and at the current pace of sales, there is a 6.7 months’ supply, which is down from 7.6%. However, only 69,000 or 16% are completed. When looking at the pace of sales vs homes that are completed (available supply), there is only a 1.1 months’ supply. The median home price was reported at $416,300, which is down 7.6% year over year. But remember, this can be skewed due to the mix of sales. Actual appreciation reports are showing that home prices have started to rise once again since Jan/Feb depending on the report as seen above.