New home sales in June posted the fastest increase in more than eight years as buyers took advantage of bargain prices,low interest rates and a federal tax credit for first-time homeowners.
While home prices are still falling,the figures released Monday were another sign the housing market is finally bouncing back. Earlier this month,the government reported that new home construction rose to the highest level since last fall. And data out last week showed home resales rose almost 4 per cent in June,the third straight monthly increase.
The worst of the housing recession … is now behind us, said David Resler,chief economist at Nomura Securities. Were turning the corner toward increased activity in housing.
New home sales rose 11 per cent in June to a seasonally adjusted annual rate of 384,000,from an upwardly revised May rate of 346,000,the Commerce Department reported on Monday.