Sales of new U.S. single-family homes surged in August and hit their highest level in more than six years, offering confirmation that the housing recovery remains on course.
The Commerce Department said on Wednesday sales jumped 18.0 percent to a seasonally adjusted annual rate of 504,000 units. That was the highest level since May 2008 and marked the second straight month of gains.
July’s sales were revised to show a 1.9 percent gain instead of the previously reported 2.4 percent drop. Economists polled by Reuters had forecast new home sales rising to only a 430,000-unit pace last month.