The U.S. Commerce Department announced on Tuesday that the sales of new single-family homes decreased 7.8 percent m-o-m to a seasonally adjusted annual rate of 626, 000 units in May. That was the lowest level since December 2018.

Economists had forecast the sales pace of 680,000 last month.

April’s sales pace was revised up to 679,000 units from the originally reported 673,000 units.

According to the report, new home sales in the South, the largest area, fell 4.9 percent m-o-m in May to the highest level since July 2007, while sales in the Midwest rose 6.3 percent m-o-m. But sales tumbled 35.9 percent m-o-m in the West and plunged 17.6 percent m-o-m in the Northeast.

In y-o-y terms, new home sales recorded a 3.7 percent drop in May.