suntimes
SWEET 
Weather Updates

US new home sales hit fastest pace in 5 years

Sales new homes rose May fastest pace five years solid gathadded signs steadily improving housing market. | AP Photo

Sales of new homes rose in May to the fastest pace in five years, a solid gain that added to signs of a steadily improving housing market. | AP Photo

storyidforme: 51249888
tmspicid: 19057402
fileheaderid: 8618256

WASHINGTON — Sales of new homes rose in May to the fastest pace in five years, a solid gain that added to signs of a steadily improving housing market.

The Commerce Department says new home sales rose 2.1 percent last month compared with April to a seasonally adjusted annual rate of 476,000, the highest level since July 2008.

The median price of a new home sold in May was $263,900, up 3.3 percent from a year ago.

Sales of new homes remain below the 700,000 annual pace that’s considered healthy by most economists. But the pace has increased 29 percent from a year ago.

Analysts say the housing recovery is looking more sustainable and should continue to boost economic growth this year, offsetting some drag from higher taxes and federal spending cuts.



© 2014 Sun-Times Media, LLC. All rights reserved. This material may not be copied or distributed without permission. For more information about reprints and permissions, visit www.suntimesreprints.com. To order a reprint of this article, click here.