Sales of New Homes Decline a Fifth Time in Six Months

New York Times (06/26/08) P. C13; Grynbaum, Michael M.
The Commerce Department reports that sales of new homes fell 2.5 percent in May to a seasonally adjusted annual rate of 512,000; the decrease represents the fifth time in six months that volume has fallen. Also, the government now says that sales of new homes actually rose 4.8 percent in April, revised upward from an earlier estimate of a 3.3-percent increase for that month. Still, the decline in May came as the median price of a new home fell to $231,000, down 5.7 percent from a year earlier. Moreover, the inventory of unsold homes swelled; it would take just under 11 months to deplete the supply at the current sales pace.