The U.S. Department of Commerce reported sales of new homes were up 11 percent in June — the largest jump in more than eight years and well above the rise of 2.3 percent expected by analysts.
Resales of existing homes were up 3.6 percent in June, the third straight monthly increase.
“The evidence is clear that home buyers are taking advantage of Recovery Act tax incentives, declines in home prices and relatively low mortgage rates,” U.S. Under Secretary for Economic Affairs Rebecca Blank said.
“While the economic environment remains difficult, as more Recovery Act dollars hit the streets, we anticipate that it will further bolster the economy in the coming months.”
First-time homebuyers who buy a home on or after Jan. 1, 2009, and before Dec. 1, 2009, and finance their purchase with a VHFA loan might be eligible for a tax credit equal to 10 percent of the home’s purchase price, up to a maximum of $8,000.