U.S. homes sale rises in June after record low

July 26th, 2010 - 10:55 pm ICT by BNO News  

WASHINGTON D.C. (BNO NEWS) – United States new home sales rose 23.6 percent in June after falling to an all-time low in May, the U.S. Commerce Department announced on Monday.

According to the Commerce Department’s U.S. Bureau of the Census, sales of new single-family houses in June were of 330,000 units, well above the expectations of a 3.7 percent increase. In May, a record low of 267,000 units were sold, a 36.7 percent fall.

“This is welcome news, though month-to-month housing data is volatile. But one key ingredient for a healthy housing market is job growth, and the President remains tightly focused on ensuring that the labor market continues to recover,” Commerce undersecretary Rebecca Blank said.

However, in comparison with 2009 figures, sales are down by 16.7 percent from the same month. Demands for new homes have been low due to high rates of foreclosure and distressed sales pushing down prices for existing houses.

The June sales data indicates that it would take 7.6 months to clear the existing supply of homes, down from 9.6 months figure in May. Median sales prices of new homes have fallen 0.6 percent in the past year to $213,400.

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