Purchasing Power

New Home Sales Surge

June saw the biggest increase in new-home purchases in eight years, climbing 11 percent. Following cautious but widespread speculation that the economy is finally showing signs of stability, the unexpected increase is a welcome indicator. Exceeding all forecasts made by economists surveyed for Bloomberg, home sales rose to a 384,000 annual pace, according to figures reported by the Commerce Department on Monday. Most economists are noting that this is a clear sign heralding the end of the worst economic slump since the Great Depression but only time will tell.