June new-home sales rise at fastest pace since Feb '08

Washington

PURCHASES of new US single-family homes rose in June to the highest level in more than eight years, indicating a firm housing market.

Sales increased 3.5 per cent to a 592,000 annualised pace, the fastest since February 2008, Commerce Department data showed on Tuesday in Washington. Figures for May were revised higher. The median forecast in a Bloomberg survey called for a 560,000 rate.

While the government's new-home purchase data is subject to big swings from month to month, the broader picture for residential real estate shows steady gains fuelled by stable employment and low borrowing costs. Faster wage growth and cons…