Sales of previously owned U.S. homes climbed to an eight-year high in June as momentum in the residential real estate market accelerated.
Closings on existing homes, which usually occur a month or two after a contract is signed, climbed 3.2% compared with June to a 5.49 million annualized rate, the most since February 2007, the National Association of Realtors said Wednesday. Prices rose to a record amid tight supply.
The housing market has picked up in recent months as more jobs, historically low mortgage rates and greater household formation boosts demand. Faster wage growth will be needed to help housing continue its recovery and become a bigger contributor to growth this year.
“The housing market is on fire,” said Thomas Costerg, a senior economist at Standard Chartered Bank in New York, who projected sales would rise to a 5.48 million pace. “The strength in housing could offset some of the weakness we are seeing elsewhere.” More here.