Sales of new homes in the US rose 8.3 percent in June to reach a seasonally adjusted annual rate of 497,000 units, according to the US Department of Commerce. This is the highest level in five years and surpasses economists’ forecasts of 482,000 units.
It also translates to a 38.1 percent increase from a year ago, or the biggest growth since January 1992. It was also the third consecutive month of gains in new home sales, easing concerns over a slight drop in existing home sales reported earlier.
“This is a great number, especially since we have to remember this is really the first number we are seeing which will show the effect of that spike in mortgage rates in June,” said CNBC property correspondent Diana Olick. “Apparently it was not a problem for the new home buyer.”
At the same time, the median price of new homes climbed 7.4 percent from a year ago, while their supply moved up 1.3 percent to 161,000 units – an indication that home builders are confident enough to increase construction. However, housing inventory in the country remains tight.
“We’re in the early stages of a housing recovery. This is a three-, four-, maybe even a five-year correction process,” noted Richard Smith, CEO of property service firm Realogy.
Nikki De Guzman, Junior Reporter at PropertyGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg
The lure of Singapore for Sansiri
Parking or a home; price is the same
Investors cashing in on Barcelona boom