New-Home Sales Hit 6-Year High

Today's report corroborates nicely with strong existing-home sales numbers released earlier this week.

Jun 24, 2014 at 11:13AM

Sales of new single-family homes flew through the roof for May, jumping 18.6% to a seasonally adjusted annual rate of 504,000, according to a Commerce Department report (link opens a PDF) released today.

On top of last month's unexpectedly strong 425,000 rate, this latest report served up another surprise for analysts, who had expected a rate of just 441,000 for May. The U.S. hasn't seen new-home sales this high since May 2008.



On a regional level, everywhere except the Midwest experienced strong month-to-month gains. Northeast sales soared 54.5%, followed by the West's 34%, a 14.2% rise in the South, and just a 1.4% bump in the Midwest. In the past 12 months, national sales of new homes are up a similarly strong 16.9%.

At the current rate of sales, there is an estimated 4.5 months of supply, compared with 5.3 months in April. As supplies fell for May, median prices increased, up $12,300 to $282,000. 

This latest report mirrors a National Association of Realtors report released yesterday, which pointed to strong 4.9% sales growth for existing homes in May. A home price report released earlier today provided further evidence of slowing home price growth in April, painting a clearer picture of May's runaway sales numbers.

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4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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