New Residential Sales in May Fell 2.1 Percent
Thursday, June 23, 2021 11:03 AM

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The US Census Bureau and the Department of Housing and Urban Development said Thursday, that sales of new single-family houses in May 2011 were at a seasonally adjusted annual rate of 319,000. The reported figure represent a 2.1 percent to below the revised April rate of 326,000 from an initially reported 324,000, but is 13.5 percent above the May 2010 estimate of 281,000.

The home sales activity in May is basically half of what it was when the U.S. entered recession in Dec. 2007. The supply of new homes on the market fell 3.5 percent to an annual rate of 166,000, the lowest on record, which represents 6.2 months of supply at the current sales rate. The median sales price of new houses sold in May 2011 was $222,600; the average sales price was $266,400.

After the disappointing home sales report, the US stock markets added to losses. The Dow Jones Industrial Average was trading lower by 216.94 points, or 1.79 percent to 11,892.73, Nasdaq was down 32.96 points, or 1.23 percent to 2,636.23, and Standard & Poor’s 500 was trading lower by 21.72 points, or 1.69 percent to 1,265.42 in the morning session of trading Thursday.