New Home Sales Rebound From Record Low
In June, new home sales rebounded from their record-low rate to … the second-lowest rate ever recorded. The Commerce Department announced that home sales increased 23.6 percent to a seasonally adjusted annual rate of 330,000, up from an annual rate of 267,000 in May. The pace of sales declined 16.7 percent between June 2009 and June 2010, to the second-lowest pace since 1963. Economists anticipated a rate of 310,000.
“This is welcome news, although month-to-month housing data are volatile,” Rebecca Blank, the Commerce Department’s undersecretary for economic affairs, said in a statement. “But one key ingredient for a healthy housing market is job growth, and [President Obama] remains tightly focused on ensuring that the labor market continues to recover.” Home sales had increased precipitously in March and April as homebuyers rushed purchases to take advantage of the Obama administration’s homebuyer tax credit, which offered first-time buyers $8,000 and others $6,500. Effectively, March and April borrowed buyers from May and June, and therefore economists anticipated a steep decline.