New Home Sales Rise to Record in June
Increased construction likely means more business for flatbed trucking companies that haul building materials. Also, in the case of home construction, dry van freight can see an increase in demand for the delivery of household appliances and furniture.
In a separate report, the National Association of Realtors said sales of existing homes edged down 0.3% in June.
Meanwhile, sales of new U.S. homes hit a record pace in June, the government said on Friday in a report that defied market expectations that the hot housing market would take a breather after sales surged last month.
The increase in sales in June left the inventory of new homes on the market at only 3.6 months' worth, the lowest since November 1998.
Buoyed by low mortgage rates, the housing sector has provided a key pillar of support for the U.S. economy as it struggles to recover from the 2001 recession.
June new-home sales were boosted by a 32.3% surge in the Northeast and a 9.8% jump in the Midwest. A 0.9% increase in the South and a 2.7% gain in the West also brought new-home sales in those regions to new records.
NAR said sales of pre-owned homes fell to a seasonally adjusted annual rate of 5.83 million units from a revised 5.85 million rate the month before. Realtors still expect 2003 existing home sales to come in at a record level, Reuters said.
