New home sales in May up at 6-year high

[WASHINGTON] Sales of new US single-family homes jumped to a six-year high in May, the latest indication that the housing market was starting to dig out of a recent soft patch.

The Commerce Department yesterday said that sales surged 18.6 per cent to a seasonally adjusted annual rate of 504,000 units. That was the highest level since May 2008, while the increase was the biggest since January 1992.

April's sales pace was revised down to 425,000 units from a previously reported 433,000 units.