WASHINGTON–Sales of new, single-family homes leaped during June to the highest level in eight-and-one-half years.
According to the Commerce Dept., sales of single-family homes were up 3.5% to a seasonally adjusted annual rate of 592,000 during June, the highest level since February 2008.
Sales were up 25.4% from a year ago. Last month's increase left new home sales in the second quarter well above their average for the first three months of the year. The median price for a new home rose 6.1% from a year ago to $306,700.
The strong housing market is being driven by both a robust labor market, Millennials, and low rates.
Meanwhile, home prices in 20 U.S. cities actually rose less during May than had been forecast, according to the S&P CoreLogic Case-Shiller data. The 20-city property values index increased 5.2% from May 2015 (forecast was 5.5%) after climbing 5.4% in the year through April.
Nationally, the home-price gauge rose 5% from 12 months earlier.