• May new home sales fell 6 percent from April to 551,000 units (SAAR), according to the U.S. Census Bureau. New home sales were up 8.7 percent from May 2015.
• Inventory of new homes for sale in May rose 1.2 percent from April and 16.2 percent year-over-year, to 244,000 units (SAAR).
• The median price of new homes sold in May rose 1 percent year-over-year, to $290,400.

After a sharp uptick in April (which has since been revised downward substantially), it’s unsurprising to see this kind of monthly drop in May new home sales. This doesn’t diminish the overall upward swing new home sales have been on, and May sales were up strongly from a year ago. More encouragingly, the inventory of new homes for sale rose strongly in May, and permits and starts data points to more to come. While still not enough to make much of a dent in the overall inventory shortage the market is experiencing, this steady flow of homes coming onto the market may give some buyers a few more choices this summer. But new homes also command a hefty price premium over existing homes, and that price keeps rising, likely limiting options for many first-time and entry-level buyers.