New-home sales took a dive in May, according to fresh government data published Wednesday, as affordability pressures and macroeconomic uncertainty continue to slow homebuying demand.
The annual pace of sales for newly built homes plummeted more than 7% to 580,000 from 626,000 in April — which already represented a more than 6% drop from March and roughly 11% decline over the year. The May pace of sales was 6.8% lower than a year ago.
But the U.S. is not short of interested buyers.
“The U.S. housing market is stuck between strong pent-up demand and constrained affordability,” said Selma Hepp, chief economist at Cotality, sharing her reaction to the May estimates for new-home sales activity with Scotsman Guide.
Still, the figures published b...