Industry News

New-home sales drop 5.9% in May

Prices for new homes eke out gains

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Sales of new single-family homes in May 2006 were at a seasonally adjusted annual rate of about 1.23 million, the U.S. Census Bureau and the Department of Housing and Urban Development reported this week, which is a 4.6 percent rise over the revised April rate but is 5.9 percent below the May 2005 estimate. The median sales price of new houses sold in May 2006 was $235,300, which is down 4.3 percent since April but up 3.1 percent since May 2005. The average sales price, meanwhile, was $294,300 in May 2006, which is down 2.6 percent since April and up 2.4 percent since May. Since January, the median sales price fell 3.9 percent and the average sales price fell 2.2 percent. The seasonally adjusted estimate of new houses for sale at the end of May was 556,000. This represents a supply of 5.5 months at the current sales rate. A supply greater than six months is typically considered to be indicative of a buyer's market while a supply less than six months indicates a seller's market. Regio...