US new home sales rise at fastest pace since 2007 in March
Updated : 16:24
US home sales increased last month at their fastest clip since 2007.
New home sales in the US jumped by 5.8% month-on-month in March to reach an annualised rate of 621,000, according to the Department of Commerce.
Economists had forecast an annualised pace of sales of 590,000.
In comparison to the year-ago level they rose by 15.6%.
February's reading was revised down by 5,000 to 587,000.
Over the whole of the first quarter, new homes sales rose at an average rate of 598,000.
The stock of new homes for sale declined last month, from the equivalent of 5.4 months' worth of sales to 5.2 months.
Blerina Uruci at Barclays Research commented: "On net, taking into account a wide variety of indicators, the housing market continues its steady recovery, and we expect further gains this year. Today’s report left our Q1 GDP tracking estimate unchanged at 0.8% q/q saar. We continue to track another strong increase in residential investment in Q1 17, driven by strong increases in both multifamily and single family construction, as well as a solid contribution from brokers' commissions given the steady rise in home sales."