U.S New Home Sales increased in May to 369,000 from 343,000 in April, having gained in other words 7.6 per cent, the U.S Census Bureau reported today. Economists expected a rise to 347,000, however the figure was better than expected as it reached a new high since May 2010 (see chart below). The improvement in the housing market could lead to increasing consumption of housing goods, increasing demand and could curb increasing concerns of slower recovery in the U.S.
However the New Home Sales is still much lower compared to its levels reached before 2006 when the index was above 1000. The latter shows a sector that struggles to recover and starts trending upwards when the economy in general shows signs of weakening.