US new home sales beat forecasts in May, prices jump

Activity in America's residential real estate market continued to hum along at a solid pace last month, the latest official revealed, amid sharp price increases.

New single-family home sales in the US grew by 2.9% month-on-month in May to reach an annualised rate of 610,000, according to the Department of Commerce.

In comparison to the same month one year ago, sales were 8.9% ahead.

Economists had forecast 600,000.

In parallel, an initial estimate of 569,000 sales in April was revised to 583,000.

Meanwhile, in non-seasonally adjusted terms the average price of a new home in the States jumped from 310,200 in April to 345,800 for May.

Median prices rose even more strongly, from 367,700 to 406,400.

The supply of new houses available for sale was unchanged at 5.3 months' worth, the same as in April.

"In all, today's report reinforces our view of a steady recovery in the housing sector," said Barclays Research's Michael Gapen.