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WASHINGTON, Jul 24 (Reuters) – The sale of new single-family homes in the United States rose in June to highs of almost 13 years, with the property market performing above that of the general economy, in a context of low interest rates and migration from urban centers to less populated areas due to coronavirus, according to a report released this Friday by US Census Bureau.
Other published data showed that business activity increased to its highest level in six months in July, but companies reported a decline in orders as the resurgence of coronavirus cases weighed on demand.
The Commerce Department said new home sales jumped 13.8%, at a seasonally adjusted annual rate of 776,000 units last month, he highest level since July 2007. Sales of new homes are accounted for by signing a contract, being one of the main indicators of the real estate market.
Economists consulted by Reuters They had forecast a 4% rise to 700,000 units. The May figure was revised to 682,000 units from the 676,000 initially reported.
New home sales have made up for losses suffered when businesses closed in mid-March to stop the spread of COVID-19.
The report is released after this month’s data showed an increase in homebuilder confidence in July, and an acceleration in home construction and used home sales in June.
But the explosion of COVID-19 infections, which has forced some authorities in the southern and western regions to close deals again or pause the reopening, could slow the momentum of the real estate market.
Furthermore, the recovery in the labor market appears to have stalled, and the number of Americans applying for new unemployment benefits rose last week for the first time in nearly four months. The staggering 31.8 million people were receiving unemployment checks in early July.
In a separate report on Friday, the data signature IHS Markit He said his country’s composite PMI production index, which tracks manufacturing and services sectors, rose to a reading of 50.0 this month from 47.9 in June. The advance ended a streak of five consecutive monthly falls.
A reading above 50 indicates growth in private sector production. IHS Markit claimed that some service providers were struggling with the reintroduction of containment measures. The survey’s composite new order index fell to a reading of 49.5 this month from 49.9 in June.
(Report by Lucia Mutikani, Edited in Spanish by Janisse Huambachano and Manuel Farías)
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