Record Number of Homes Completed in May

Builders completed the most homes in more than a decade this May, 1,291,000. May had 10.4 percent more completions than the year before, and 1.9 percent more month-over-month.

By region, the Midwest was king for completions. The National Association of Realtors' chief economist Lawrence Yun explains that because of these gains, the Midwest will remain more affordable than other regions, "The more unaffordable West region will continue to experience an intense housing shortage, as both housing permits and housing starts fell in that region." Permits were up in the Midwest by 7.2 percent from April, and 17.4 percent YOY, Realtor.com reports.

“Construction is moving in the right direction. But it's still below what we need right now," says realtor.com chief economist Danielle Hale. "People who are in the market will find these housing completions will make a difference ... but it's still going to be competitive for buyers because there's still not enough." She pointed out the housing market needs about 1.25 million new single-family homes completed annually to meet demand. And the market is still about 30 percent below that.

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