New home sales In the US is Up by 5.7% in August 7-year high

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Newly built homes being sold has posted the highest level since early 2008 in August, that's more than 7 years. This shows that the demand in housing is strengthening. New single-family homes sales were up by 5.7% to a seasonally adjusted annual rate of 552,000 according to the Commerce Department. The increase in sales is a result of steady job gains and low mortgage rates.  The real estate market hast been really hit hard by the Great Recession and recovered slowly even after the downturn ended in 2009. New-home sales have soared nearly 22% in the past year.

Strong sales in newly built home and construction could help the economy by generating construction jobs, demand for more building materials and more spending on landscaping and other services.

Home builders raised new-home prices aggressively last year, likely weighing on sales, which totaled just 414,000 in 2014. That was little changed from sales in 2013. But builders have reined in price increases this year, fueling more buyer traffic and purchases.

Federal Reserve Chair Janet Yellen said last week that she expects the housing market to keep improving as more people find jobs and younger Americans increasingly move out on their own.

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