New home sales increased 7.6% in Parker CO in May to an annual rate of 369k compared to expectations for a small gain to a rate of 345K. This was the highest level of sales since April 2010. Inventories edged higher last month to 145k which represents a 4.7 month-supply at the current sale pace. Home prices rose with the median price for a new home up 5.6% over the past year to $234,500. New home sales have been on an improving trend for the last year but remain at low levels. We have seen signs of life in homebuilder sentiment and new construction recently. That combined with record low inventories provides some hope for new home sales to continue gaining traction and move up this year from historically low levels.