In great news, new US single-family home sales have had their biggest gain in 24 years with the April numbers. As the report from the Commerce Department shows, there is also a surge in new home prices.
As Chris Rupkey, chief economist at MUFG Union Bank in New York said, “Consumers are taking the leap and buying the biggest of big ticket items of their lives and this speaks to confidence. The Federal Reserve can raise rates at their June meeting without fear the economy is going to slow.”
The new home sales went up by 16.6% to an annual rate of 619,000 units. This is the highest level that it’s been since January of 2008 and the percent increase was the most since January of 1992.
The only exception was in the Midwest where new home sales did not increase broadly.
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