After rising for two consecutive months, sales of new single-family houses fell in May to an annual rate of 319,000, according to the U.S. Department of Commerce. The latest figure is 2.1 percent below the April rate of 326,000 but is 13.5 percent above the May 2010 estimate of 281,000.
The median sales price of new houses sold in May was $222,600, while the average sales price was $266,400.
"Today's report indicates that new-home sales are holding fairly steady at a relatively low rate, with both April and May sales numbers running above the first-quarter average," said Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev. "In view of the slow progress of economic recovery and the challenges builders continue to face with regard to rising materials prices, access to construction credit, competition from foreclosed homes and inaccurate appraisals, the averages for the last two months combined represent some very slow improvement, which should continue as expected economic gains boost consumer confidence."
