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Sales of new homes hit 8-year high in June

June was the swiftest month for new single-family house sales in more than eight years, rising 3.5 percent to a seasonally adjusted rate of 592,000, according to a Commerce Department report released Tuesday. That follows news last week that the rate of existing home sales had its best month since February 2007.

The market for new homes can be volatile from month to month, but there have been steady gains across the industry. The Associated Press credited low mortgage rates and a solid job market with lifting the residential real estate market; new home sales are up more than 10 percent since the beginning of the year compared to 2015.

But new home prices also have risen and affordability may pose a challenge for many Americans, despite increasing demand. AP reports that June’s median sales price was $306,700, up 6.1 percent from a year ago.

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