The Commerce Department reported this morning (June 26)that sales of new one-family houses in May 2007 fell 1.6% from May to a seasonally adjusted annual rate of 915,000. It also revised the April numbers downward; what had been reported as a 16.2% increase was brought down to 12.4%, according to estimates released jointly by the U.S. Census Bureau and the Department of Housing and Urban Development.

The new-home sales number was down 9% from the revised May, 2006 estimate of 1,087,000. The median sales price of new houses sold in May 2007 was $236,100, up 3% from $229,100 in April; the average sales price was $313,000, up 4.6% from $299,100 in April. The price increases reported by the Commerce Department stand in marked contrast to figures indicating a drop in prices of 7% by Lennar Corp. during its fiscal second quarter.

Inventory was up marginally from the revised April estimate of a seven-month supply. The seasonally adjusted estimate of new houses for sale at the end of May was 536,000, a supply of 7.1 months at the current sales rate.SEE THE REPORT HERE.