Sales of new U.S. single-family homes raced to a near 13-year high in June as the housing market outperforms the broader economy amid record low interest rates and migration from urban centers to lower-density areas because of the COVID-19 pandemic.
New home sales rose 13.8% to a seasonally adjusted annual rate of 776,000 units last month, the highest level since July 2007. May’s sales pace was revised upward to 682,000 units from the previously reported 676,000 units.
New home sales have now recouped losses suffered when non-essential businesses were shuttered in mid-March to slow the spread of the respiratory illness. New home sales are counted at the signing of a contract, making them a leading housing market indicator.