New Home Sales Increase |
| Wall Street Journal - Jul 26, 2010 |
New-home buying surged in June after a May plunge caused by the end of a government tax credit, according to a better-than-expected report on the ailing housing sector.
Sales increased 23.6% from the previous month to a seasonally adjusted annual rate of 330,000, the Commerce Department said Monday. Inventories fell, a hopeful sign.
While the sales level was the second lowest on record since 1963, the unexpectedly strong increase offered a glimmer of hope about a sector stuck in the doldrums.
Joblessness in the U.S. continues to restrain big purchases, despite low mortgage rates. Economists surveyed by Dow Jones Newswires had estimated sales would climb in June by 3.7% to 311,000.
May sales fell 36.7% to a record 267,000, revised down from an originally reported 32.7% plunge to 300,000. The sharp drop followed buyers rushing to the market before the tax credit ended April 30, causing sales to soar in the spring.
Read Full Article from Wall Street Journal
- Posted: 2010-07-26 08:55:46
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