New-home sales in the U.S. increased to an almost 13-year high in June, fueled by record-low borrowing costs and adding to evidence that residential real estate is a bright spot for the economy.
Purchases of new single-family houses climbed 13.8% to a 776,000 annualized pace, from
An S&P gauge of homebuilder shares pared losses, trading 0.8% lower at 10:17 a.m. in New York after losing as much as 1.9% earlier.
All of the four major U.S. regions showed higher home sales in June. Purchases jumped 18% in the West and climbed 7.2% in the South. In the Northeast, the smallest of the four major regions, sales surged 89.7%.
The supply of new homes at the current sales pace fell to 4.7 months, an almost four-year low. The report also showed signs that builder backlogs are growing; the number of properties sold for which construction hadn't yet started climbed to 233,000, the most since November 2017.
New homes account for about 10% of all purchases and are considered a more timely barometer than sales of previously owned properties which are calculated when contracts close. National Association of Realtors data this week showed
Changes in the seasonally adjusted new-homes data are volatile and have a wide margin of error. There’s a 90% chance that the monthly percentage change was between a 4% decline and a 31.6% increase, according to the U.S. Census Bureau. The report is published jointly by Census and the Department of Housing and Urban Development.