New Home Sales Decline in May

Washington, DC, June 23, 2011 -- Sales of new single family homes declined for the first time in three months in May, the Commerce Department said.

However, inventories of new homes for sale reached record lows and the median sales price rose slightly, the government said.

The Commerce Department said May new home sales fell 2.1% to a seasonally adjusted annual rate of 319,000. Analysts were expecting a slightly slower pace of 310,000 for the month.

The decline ended two straight months of strong gains, with sales rising 6.5% in April and 8.9% in March. May's new home sales were 13.5% above the May 2010 level.

The median new home sales price rose to $222,600 in May from $217,000 in April, marking the first increase since December last year. However, compared to a year earlier, the May median sales price was down 3.4%