New Home Sales Fell in May

Washington, DC, June 24, 2009--The Commerce Department said new U.S. home sales fell slightly last month, another sign that the housing market's recovery is likely to be gradual and prolonged.

The agency said Wednesday that sales dropped 0.6 percent in May to a seasonally adjusted annual rate of 342,000, from a downwardly revised April rate of 344,000.

Sales were down nearly 33 percent from May last year.

May's results missed economists' expectations of a 360,000 sales pace.

The median sales price of $221,600 was down 3.4 percent from a year earlier but still up 4.2 percent from April.