Washington, DC, July 25--Sales of new homes hit a record pace in June, the government said Friday in a report that defied market expectations that the hot housing market would take a breather after sales surged last month.
The Commerce Department said sales of new single-family homes rose 4.7 percent to a record 1.160 million annual rate. Economists were expecting sales to slip to a 1.120 million rate.
June's unexpected gain in new home sales followed a revised 10.9 percent jump in May to a 1.108 million annual pace.
The increase in sales in June left the inventory of new homes on the market at only 3.6 months' worth, the lowest since November 1998.
