US home sales hover near 2-year peak

<p>US home sales remain at a near two-year zenith, according to fresh figures.</p>

New US home sales have held near a two-year zenith according to fresh data for August, while prices leapt to their highest level in more than five years.

According to the Commerce Department, this indicates a broadening recovery in housing, with the sale of new single-family dwellings edging 0.3 per cent lower to an annual seasonally-adjusted rate of 373,000.

This follows July's rate of 374,000, which was higher than estimated and proved to be the strongest since April 2010.

Buyers continue to be attracted onto the housing ladder by low borrowing costs, which is lifting demand for homebuilders, while a drop in demand for foreclosed abodes has eased downward pressure on prices.

This news failed to buoy Wall Street, however, because at 16:50 BST the Dow Jones Industrial Average was down 0.1 per cent to 13431.9 and the Nasdaq retreated 0.9 per cent to 3088.8.

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