US New Home Sales Spike 16.6%, Economy Reopens


Sales of new homes rose a strong 16.6% in May with the reopening of major parts of the country fueling healthy activity in the US housing market.

The Commerce Department reported Tuesday that sales of new single-family homes rose to a seasonally adjusted annual rate of 676,000 last month.

That was a much better performance than expected. Most economists had forecast that sales would fall in May.

The median price of a new home rose 4.9% to $317,900 in May after falling by 8.7% in April, a decliner that was attributed to heavy discounting by builders in the midst of the C-19 coronavirus chaos shutdowns.

The Big sales rebound left activity in May 12.7% higher than a year ago.

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