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New home sales rebounded in May, hitting their strongest pace in more than two years, according to figures released today by the Census Bureau.

Sales of newly built, single-family homes were at a seasonally adjusted annual pace of 369,000 units during May, reversing a two month decline and the highest figure reported since April 2010.

May's results represent a 7.6 percent gain over April's revised figure of 343,000 units and a 19.8 percent annual increase over the May 2011 level of 308,000 units.

The median sale price of new homes sold during May was $243,000, up from $222,000 one year earlier, while the average price was $273,900, up from $262,700 in May 2011. The inventory of newly built homes available for purchase was down to a 4.2 month supply, down from as much as 6.9 percent last fall.

The report is a bit of favorable economic news amid other recent signs that the recovery may be slowing, as new home construction has historically been a major driver of past economic recoveries. New home sales not only drive employment in the construction industry, but also generate a variety of secondary effects due to related spending, such as purchases of furniture, appliances and other spending that tends to accompany the purchase of a new home.

First published at: http://www.mortgageloan.com/new-home-sales-rebound-9097

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