New Home Sales in the United States registered their highest level in May for the past five years, giving indications that housing industry would be one of the driving forces of the economy. Sales climbed by 2.1% in May, reaching the annual 0.476 million units, the highest number since July 2008 and outstripping experts projections that home sales will rise to 0.462 million units. Average price per new home in the United States was 263 900 USD during May, compared to 272 600 USD in April. Experts had projected a more moderate increase in prices after the considerable jump, registered during April. The number of new homes available for sale in the end of May was 161 000, highest level since August 2011. Such number would secure sales for 4.1 months.
Right after the release of this indicator, US dollar was broadly supported against its major peers. The greenback pushed the euro to a fresh session low at 1.3066 at 14:18 GMT. The cross consolidated subsequently at 1.3080, down by 0.30% for the day. Demand for the dollar was bolstered, because news of a recovering housing market in a country could produce favorable conditions for the whole economy. A resilient housing industry could increase demand for construction materials, add new job positions and, last but not least, strengthen the confidence among consumers.
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