• May new home sales rose 2.9 percent from April and 8.9 percent from a year ago, according to the U.S. Census Bureau, to 610,000 units (SAAR). Initially reported sales figures from prior months were also revised upward.
• The median price of newly constructed homes sold in May was $345,800; the average price was $406,400.
• Inventory of new homes available for sale was up 11.2 percent from a year ago. There were more newly built homes available for sale in May than at any point since July 2009.

There’s several things to feel good about in the May new home sales report — sales rose, inventory was up by double digits and figures from prior months were all revised upward. But ultimately this report is a disappointment for those looking to builders to meaningfully help solve the pressing supply issues in the market overall, especially for entry-level buyers. The median price of a new home sold in May was close to $350,000, by far the highest it’s ever been and likely well beyond the budget of younger, first-time buyers that make up a sizable portion of the market right now. And the pressure to close deals quickly that has afflicted the existing home sales market is also seeping into the market for new homes: Roughly two-thirds of new homes sold last month were purchased before construction was finished or had even begun. While continued, slow, steady upward progress in total sales is always good, the new home sales market has not delivered the big breakout month we’ve all been waiting for with sales levels approaching 800,000 or 1 million at an annualized rate. For new homes to help alleviate the pressures buyers are facing in this market, that will need to happen at some point. I’m not holding my breath.