Sales of new homes in the US rose significantly in June, boosting thoughts of a recovering property market, BBC News has reported.
Newly released government figures have revealed a rise of 11 per cent in June in the yearly rate of new house sales in the US. Last month saw the highest number of house sales in over six months at 384,000. June?s figure increased from 346,000 home sales in May which in turn had risen from April?s number of home sales.
Despite the steady rise in new home sales, the median price property sold for was $206,200 (?125,000). This house price reveals a decrease of 5.8 per cent from May and 12 per cent from this time last year.
Jim Awad, MD at Zephyr Management based in New York, said to Reuters: ?The data will reinforce the developing thinking that housing market has bottomed and that economy has stabilised and will grow in the third quarter.?
The news regarding sales of new homes in the US follows a week after the National Association of Realtors announced an increase in house sales for previously-owned properties in June. Nevertheless, coupled with the rise in house sales is the fall in property prices, with the average house selling for $181,000.
Commenting on this price fall opening up the property market to first-time buyers, Ian Shepherdson, chief US economist at High Frequency Economics, said: ?Prospective buyers, especially first-time buyers, are not hobbled by legacy debt and see property as very affordable, provided they can get a deposit together and qualify for a mortgage.?
