New Home Sales Down in May

Washington, D.C.–New home sales dropped 2.5 percent in May, and home prices also declined, the Commerce Department said Wednesday. Purchases fell from a revised 525,000 rate in April to a 512,000 annual pace–the second-fewest amount in almost 17 years, Bloomberg reports. In March, new home purchases declined to a 501,000 an annual pace–their lowest point since 1991. The median sales prices dropped 5.7 percent in May to $231,000, compared to May 2007.The U.S. home inventory–at the current sales rate–rose slightly in May to 10.9 months’ worth. In April, the supply was 10.7 months. However, the number of homes completed and waiting to be sold fell to 182,000.