New house sales in the US increased 11% in June.

Falling property prices combined with low mortgage rates and aggressive government incentives are increasingly encouraging people to buy and consequently driving the sales.

New house sales are perceived as better indicator of housing demand because their prices are less flexible.

US property market has delivered more positive news recently, which could be taken for signs that the market is bottoming out.

Last week data revealed that sales of second home is also on the rise and housing starts grew 3.6% in June.