New-home sales surged in August to their strongest pace in more than three years, as aggressive price cuts and incentives by builders successfully drew buyers back into a housing market that had been stalled by high mortgage rates and elevated prices.
Sales of new single-family homes increased to a seasonally adjusted annual rate of 800,000 units, a 20.5 percent increase, the Commerce Department and Housing and Urban Development Department said Wednesday.
The pace was well above the 653,000 rate economists had forecast and marked the fastest selling pace since early 2022.
The unexpected jump suggests that homebuilders’ strategy of offering steep discounts and sales incentives is working to revive demand in a market where many potential buyers had been sidelined by affordability concerns. The robust sales
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