US new home sales drop 5.9% in May, second monthly decline

Sales of new homes fell for a second month in May, dropping a bigger-than-expected 5.9%

WASHINGTON -- Sales of new homes fell for a second month in May, dropping by a larger-than-expected 5.9%. The May sales decline pushed sales to a seasonally adjusted annual rate of 769,000, the Commerce Department reported Wednesday. The median price of a new home sold in May rose to $374,400, up 18.1% from a year ago. The report on new home sales followed a report Tuesday from the National Association of Realtors that sales of existing homes fell for a fourth straight month in May. Even with the sales decline, the median price of an existing home sold last month hit a record $350,300, 23.6% higher than the median price a year ago, the association said.