Sales of new homes down in May from 8-year high

Washington

PURCHASES of new homes in the United States declined in May from an eight-year high as the housing market continued to display the choppy progress that's been a hallmark of the recovery.

Sales fell 6 per cent to a 551,000 annualised pace following a 586,000 rate in April that was slower than previously estimated, Commerce Department figures showed on Thursday. The median estimate in a Bloomberg survey called for a 560,000 pace in May.