Industry News

New home sales jump to 6-year high

Wednesday, September 24, 2014

After falling for two straight months, nationwide sales of new homes jumped 18 percent in August to the highest level since May 2008.

The Commerce Department says new home sales reached an annual rate of 504,000 in August, 33 percent higher than August of 2013.

The jump in August sales comes during the same month when housing construction slumped. Housing starts fell 14.4 percent in August, the biggest one-month drop in more than a year. Even so, home construction in July reached the highest level in almost seven years.

For the companies that build new homes, optimism is rising.

A report last week from the National Association of Home Builders said its builder confidence index rose for he fourth consecutive month in September, to the highest level since November 2005.

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