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New home sales hit high
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July 30, 1998: 10:59 a.m. ET
Sales hit record 935,000 annual rate in June, soaring past Wall Street estimates
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NEW YORK (CNNfn) - New home sales in the United States soared to a record annual rate of 935,000 in June, sparked mainly by rising incomes allowing buyers to purchase new homes, the Commerce Department reported Thursday.
The 935,000 figure represents a 3.8 percent jump over May's adjusted rate of 901,000. It was also well ahead of Wall Street forecasts, which called for an easing of the rate to 888,000. June's rate was 15.4 percent over the year-ago rate of 810,000.
June marks the 10th consecutive month sales exceeded the 800,000 annual rate.
New home sales were strongest in the South, which reported a 21.8 percent increase to an annual rate of 469,000. The West, which logged the biggest jump in May, fell 16.8 percent to a rate of 218,000.
Northeast sales fell 10.8 percent to an annual rate of 91,000. In the Midwest, sales climbed 4.6 percent to 158,000.
The supply of homes for sale in June was the lowest on record at 3.7 months, meaning construction activity should remain strong well into the second half as builders race to keep up with demand.
Prices for new homes dropped to an average of $175,800 from $184,500 in May. 
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Commerce Department
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