New single-family home sales south of the border indicated the economy in the United States continues to chug right along, achieving 610,000 units in May, up 2.9%
April's sales pace was also revised sharply higher to 593,000 units from 569,000 units.
Economists had forecast new home sales, which make up about 10% of all home sales, rising 5.4% to a pace of 597,000 units last month. Sales were up 8.9% on a year-on-year basis in May.
The housing market has been bolstered by continued strong job growth. The unemployment rate fell to a 16-year low of 4.3% in May and mortgage rates are still favorable by historical standards.
However, higher costs for building materials and shortages of lots and labor have restricted home building, and, with demand outstripping supply, house prices are still high in the States.
The median house price rose to a record high of $345,800 in May, from $310,200 in the prior month. The average sales price last month was $406,400, also a record high.
