US new home sales rise at fastest pace since 2008 in May

Sales of new homes in the US recovered to their fastest pace since 2008 last month, the Department of Commerce said.

According to data released on Tuesday, new home sales jumped 19.5% year-on-year in May to an annualised rate of 546,000, exceeding expectations for a print of 525,000 and edging higher of the previous month upwardly revised reading of 536,000.

In comparison to April sales increased by 2.2% on the month.

Meanwhile, the median price of new homes rose fell to $282,000 from $285,600 one year back.

The stock of homes available for sale slipped to the equivalent of 4.5 months´ worth of sales from 4.6 in the prior month.