New home sales grew 7.6% in May to an annualized pace of 369,000 units, their fastest pace in two years. Home sales in May are 19.8% higher than year-ago levels. Sales have now been trending upward since August of last year.
Some of May’s increase may be due to house prices, which fell from April to May. The median price of a new home was $234,500, down 0.6% from April, but 5.6% above year-ago levels.
The volume of new home sales remains near its bottom level in 2010. In fact, new home sales remain at only one quarter of their peak 1,389,000 pace set in 2005. Despite the low levels, new home sales have been on an upward trend since mid-2011.
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