Surprise 5.9% drop in new home sales; prices hit record high

WASHINGTON (AP) — Sales of new homes fell 5.9% in May, the second monthly decline, while median home prices kept soaring, hitting an all-time high. The May sales decline pushed sales down to a seasonally adjusted annual rate of 769,000, the Commerce Department reported Wednesday. The median price of a new home sold in May jumped to $374,400, up 18.1% from a year ago. The report on new home sales followed a report Tuesday from the National Association of Realtors that sales of existing homes fell for a fourth straight month in May.