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在线翻译:
szdaily -> World Economy -> 
US new home sales shine
    2020-07-27  08:53    Shenzhen Daily

SALES of new U.S. single-family homes raced to a near 13-year high in June as the housing market outperforms the broader economy amid record low interest rates and migration from urban centers to lower-density areas because of the pandemic.

The upbeat report from the U.S. Commerce Department on Friday followed on the heels of data this month showing a surge in homebuilder confidence in July, and an acceleration in home construction and sales of previously owned houses in June.

The coronavirus crisis has led companies to allow employees to work from home. The emergence of home offices and schooling has fueled demand for spacious homes in small metro areas, rural markets and large metro suburbs. Housing market strength could help to shore up the retail sector as homeowners buy furniture, garden equipment and other supplies.

“Housing has a strong immune system,” said Michelle Meyer, chief U.S. economist at Bank of America Securities in New York. “The shock disproportionately impacted the lower-income population who are less likely to be homeowners.”

New home sales rose 13.8 percent to a seasonally adjusted annual rate of 776,000 units last month, the highest level since July 2007. May’s sales pace was revised upward to 682,000 units from the previously reported 676,000 units.

New home sales have now recouped losses suffered when non-essential businesses were shuttered in mid-March to slow the spread of the respiratory illness. New home sales are counted at the signing of a contract, making them a leading housing market indicator.

Economists polled previously had forecast new home sales, which account for about 14 percent of housing market sales, rising 4 percent to a 700,000-unit pace in June. New home sales accelerated 6.9 percent from a year ago in June.

But a resurgence in new COVID-19 infections, which has forced some authorities in the hard-hit south and west regions to either shut down businesses again or pause reopenings, could slow the housing market momentum.

In addition, the labor market recovery appears to have stalled, with the number of Americans claiming unemployment benefits rising last week for the first time in nearly four months. A staggering 31.8 million people were receiving unemployment checks in early July.

Job losses have disproportionately affected low-wage workers, which could explain why the housing market is doing much better than other sectors of the economy, which slipped into recession in February.

Sky-rocketing coronavirus cases are casting a shadow over business activity, though output is stabilizing. A separate report Friday from data firm IHS Markit showed its flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, rose to a reading of 50.0 this month from 47.9 in June. The increase ended five straight monthly declines.(SD-Agencies)

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