New-Home Sales Show Highest Rate Since May 2008

Sales of newly built, single-family homes in May rose to their highest rate since May 2008-18.6 percent, a seasonally adjusted annual rate of 504,000 units.

The figures, released by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, are in line with the National Association of Home Builders' recent industry surveys that showed more consumers are getting back into the marketplace.

"This increase is a welcome sign after a slow start to 2014," said NAHB Chief Economist David Crowe in a statement. "As job creation continues, we can expect further release of pent-up demand and continued gradual growth in the housing recovery."

Sales in May increased 54.5 percent in the Northeast, 34 percent in the West, 14.2 percent in the South and 1.4 percent in the Midwest.