Good news from the Real Estate market. New single family home sales unexpectedly surged in July, and reached the highest levels in almost nine years. The report has increased projections of home sales for near future.
According to the Commerce Department new home sales jumped 12.4% to a seasonally adjusted annual rate of 654,000 units in July, which is the highest level since the end of 2007. July was the fifth straight monthly gain in new home sales. Sales of homes up a total of 31.3 percent from last year.
Millan Mulraine, deputy chief economist at TD Securities in New York, said in a statement, “A very rosy picture is beginning to emerge on the housing market, pointing to sustained buoyancy in the sector’s recovery, which remains one of the few bright spots for the U.S. economy,”
The surge in home sales also suggests an increase in residential construction investment, since many of the new homes that were sold are under construction or did not yet start construction.