New-Homes Sales Surge |to Best Level Since 2007

     (CN) – Sales of new homes surged in July, with Americans snapping up homes at the fastest pace in almost nine years, the latest sign that low mortgage rates and a strong job market are having a beneficial ripple effect on the economy.
     The Commerce Department reported Tuesday that new-home sales jumped 12.4 percent last month to a seasonally adjusted rate of 654,000 units the strongest level since October 2007.
     July’s median sales price dipped 0.5 percent from a year ago to $294,600, the department said.
     Demand is also outpacing construction. Currently, there’s just a 4.3 month supply of new homes on the market, compared with the 5.2 month supply on the market a year ago.
     New home purchases were particularly strong in the Northeast, which saw a 40 percent increase in sales last month. The South came next, with 18.1 percent.
     New home sales in the Midwest and West were mostly unchanged.

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