New Home Sales Rise But So Do Prices

Sales of previously owned homes rose in May.

New home sales are up 9% over 2016.

New home prices are now at a record high.

Average sales price of new homes sold in May was $406,400.

Price increases are largely being driven by a low inventory and high buyer demand.

But why, if there are so many buyers, aren't builders building more houses?

Lack of available building lots.

A strengthened labor market and still-low mortgage rates are keeping buyers interested and active in the market.