By Steve Goldstein
WASHINGTON (MarketWatch) -- Sales of new homes fell 2.1% to a seasonally-adjusted annual rate of 319,000 in May, the Commerce Department estimated Thursday. The new-home sales pace was higher than the MarketWatch-compiled economist estimate of a 310,000 rate and also 13.5% above May 2010 levels, and came as April figures were modestly revised higher to a 326,000 rate from an initially reported 324,000 rate. That said, activity is basically half of what it was when the U.S. entered recession in Dec. 2007. The supply of new homes on the market fell 3.5% to an annual rate of 166,000, the lowest on record, which represents 6.2 months of supply at the current sales rate. The median price of a new home, which isn't adjusted, fell 3.4% from year-earlier levels to $222,600, though that was 2.6% above April levels.
