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May new-home sales spiked, surging 6.7 percent to 689,000, according to the Commerce Department. The median sales price was $313,000, and inventory was 299,000, representing 5.2-months’ supply.

“Sales numbers continue to grow, spurred on by rising home equity, job growth and reports of a greater number of millennials entering the single-family housing market,” said Randy Noel, chairman of the National Association of Home Builders (NAHB), in a statement.

“We saw a shift to more moderately-priced home sales this month, which is an encouraging sign for newcomers to the market,” said Michael Neal, senior economist at the NAHB. “Since the end of the Great Recession, inventory has tracked the pace of sales growth. While we expect continued gains in single-family housing production, inventory may be partially constrained by ongoing price increases for lumber and other construction materials.”

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