WASHINGTON – Sales of new U.S. homes hit a record pace in May, the government said today, buoyed by continued low lending rates and the end of the war in Iraq.
This surge in home construction activity is likely to produce an upswing in business for lawn care professionals as well.
The Commerce Department said sales of new single-family homes rose 12.5 percent to a record 1,157,000 annual rate, surprising analysts who had expected sales to rise to a more modest 1,034,000 rate.
May's hefty gain followed a revised 1 percent gain in April to a 1,028,000 annual pace. With mortgage rates at their lowest in decades, homebuyers have been snapping up both new and existing homes, providing a key pillar of support for the sluggish U.S. economy.
The May percentage gain was the largest since September 1993 and left the inventory of new homes on the market at only 3.5 months' worth, the lowest in more than four years.
Although exact figures are not available, it is likely this surge in home construction activity produced a noticeable upswing in business for lawn care professionals as well.
Source: Reuters