The U. S. Commerce Department has that said that sales of new single-family homes fell sharply in May compared to April.

According to the official reports, sales plummeted 32.7 percent in the month after two consecutive months of gains that is generally attributed to a federal tax credit for home-buyers that ended April 30.

The annual rate of home sales in May declined to 300,000, down from an upwardly revised figure of 446,000 for April.

Sales in May were 18.3 percent below the same month a year ago.

The median sales price for new homes in April was $200,900, up from April's median price of $198,400. The average sales price for new homes was $263,400, also up from April, when the average price was $249,500, the department further said.

It was also reported that at the end of April, an estimated 213,000 new homes remained on the market, a supply expected to last 8.5 months at the current rate of sales. (With inputs from Agencies)