Sales of new single-family homes in the US increased more than expected in May, indicating that the country’s housing market could be on the cusp of recovery after being battered by the Covid-19 pandemic.
New home sales jumped 16.6 per cent to a seasonally adjusted annual rate of 676,000 units last month, according to new data from the US commerce department.
New home sales are counted at the signing of a contract, making them a leading housing market indicator for the world’s largest economy.
April’s sales pace was revised down to 580,000 units from the previously reported 623,000 units.
Economists polled by Reuters had forecast new home sales, which account for about 10 per cent of total housing market sales, rising 2.9 per cent to a pace of 640,000 in May.