Months Supply of Housing

New Home sales data was reported this morning slightly better than estimates at 369k on a seasonally adjusted annualized rate in May vs. 343k for April.  At that pace, there are 4.7 months of supply of new houses, which is the lowest level since 2005.  That's still a little elevated compared to where supply was in the 90s, but it's much better than it was in 2009 when the figure peaked at 12.2.  On average, the housing market has carried 6.6 months of supply since 1963.