US new home sales beat expectations in June

Sales of new single-family homes in the US rose more than expected in June, while the inventory of homes for sale fell to their lowest level in more than 11 years.

Sales rose to an annual rate of 384,000 in June, up 11 per cent from May, while the number of new homes still for sale fell to 281,000. Despite the encouraging data, the average sale price of a new home fell to $206,200 – down 12 per cent from a year ago.