The U.S. Commerce Department announced on Friday that the sales of new single-family homes climbed 13.8 percent m-o-m to a seasonally adjusted annual rate of 776, 000 units in June. That was the highest level since July 2007.

Economists had forecast the sales pace of 700,000 last month.

May’s sales pace was revised up to 682,000 units from the originally reported 676,000 units.

According to the report, new home sales in the South, the largest area, increased 7.2 percent m-o-m in June, while sales in the Northeast surged 89.7 percent m-o-m, sales in the West climbed 18.0 percent m-o-m and sales in the Midwest rose 10.5 percent m-o-m.