New Home Sales Improve In May

This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.

ST. LOUIS, MO (KTVI)-- It's the latest signal that the housing market could be near bottom. Its a bright spot for the nation's struggling housing market.  A new report indicates that the real estate  industry could be on the mend.

According to the U.S. Commerce Department - new home sales shot up 7.6% in May - the highest level in two years and up more than 20% compared to 2011.

While new home sales account for only seven and a half percent of the U-S housing market, the average price of a new home jumped more than 5% to $234,500 in May - yet another sign that the real estate market is improving.