U.S. New Home Sales June 2020 According To The Commerce Department
New Homes In America Selling Faster In June
The Commerce Department reports new home sales rose 13.8 percent in June. New home sales in June 2020 were at highest since July 2007. New home sales are counted at the signing of a contract which provides a good indication of the health of the housing market in America.
Moreover they can be an early indicator that big ticket item retail sales will rise or fall. Increased new home purchases normally means there will be an increase in the sale of furniture and garden products as Americans then furnish their new home and garden.
The Commerce department figures fly in the face of frighteningly high unemployment levels in USA and out of control spread of the virus in particularly the west and south of USA. However increasing new home sales and likely increased retail sales is not the only good news. General business activity across America has returned to growth according to the U.S. Composite PMI Index from IHS Markit after 5 moves of shrinkage. This applies to the manufacturing and services sector in USA.
Borrowing to buy a new home in USA is currently at the lowest for 49 years according to Freddie Mac. Money has rarely been cheaper or more easily accessible for many Americans. With new homes increasing in value at 5.6 percent and money so cheap maybe now is the time to buy a new home as a good investment especially as they were selling faster in June than May.