NEW YORK (TheStreet) -- New home sales in the U.S. rose to a seasonally adjusted annual rate of 497,000 in June, the highest level since July 2008.
Sales of newly constructed homes climbed 8.3% from a downwardly revised estimate of 459,000 in May and up 38% from a year earlier.
Economists polled by Bloomberg expected new home sales to rise to 481,000 in June from the original estimate of 476,000 in May.
New home sales measure the number of newly constructed homes with a committed sale in a month. The June report is the first home sales report that factors in the impact of higher mortgage rates. The 30-year conventional fixed-rate mortgage backed up 100 basis points to about 4.5% between May and June.The median sales price for new home sales in June was $249,700, down from $262,800 in May; the average sales price was $295,000, down from $307,400 in May. Inventory of new homes for sale at the end of June was estimated at 161,000, unchanged from the previous month and continues to trail demand. The inventory represents 3.9 months of supply at the current sales pace. Housing starts unexpectedly fell in June, though the decline was led by multi-family starts, which tend to be more volatile. Still, homebuilders have been wary of overbuilding, although their sentiment as expressed in recent surveys has been mostly positive. "Builders are responding to demand today, not tomorrow," Bank of America Merrill Lynch economist Michelle Meyer said in an interview Tuesday. "So they are keeping inventories lean." -- Written by Shanthi Bharatwaj in New York. >Contact by Email. Follow @shavenk
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV