April New Homes Sales Drop

WASHINGTON ?EUR??,,????'??+ U.S. new home sales fell last month according to data released Wednesday by the Commerce Department. The April numbers may be a signal that the country's housing boom may be coming to an end. April sales of new U.S. homes suffered their largest monthly drop in 10 years as rising mortgage rates cooled the housing market from the previous month's record high. New U.S. home sales fell 11.8 percent to a seasonally adjusted annual rate of 1.093 million units from an upwardly revised record high of 1.239 million in March, the Commerce Department said. April's rate was the lowest level of new home sales since November in what is normally the peak season for real estate sales and the largest monthly drop since January 1994. The median sales price of new houses sold in April 2004 was $221,200; the average sales price was $270,400. The seasonally adjusted estimate of new houses for sale at the end of April was 387,000. The drop was blamed on higher mortgage rates. The average rate on a 30-year fixed mortgage increased to a high in April of 6.01 percent, almost a percentage point above the record low reached a year ago, Freddie Mac statistics show. The median price of a new house increased to an all-time high last month and the supply of homes rose. April sales of new homes fell in three regions and rose in one. They dropped 22 percent in the South to 460,000 at an annual rate, 9.4 percent in the West to a 339,000 rate, and 2.5 percent in the Northeast to 78,000. Sales rose 10.8 percent in the Midwest to 216,000. Sources: www.commerce.gov; www.census.gov; Reuters; www.freddiemac.com Total New Houses Sold During Period: 1,093,000 Percent change from last month: -11.8 Percent change from last year: + 6.4 New Houses Sold During Period By Construction Stage?EUR??,,????'??+Survey: Total sold: 100,000 Homes sold but not started: 41,000 Homes sold and under construction: 38,000 Homes sold and completed: 21,000 Houses Sold by Sales Price: % Distribution?EUR??,,????'??+Survey Total: 100,000 100% Under $100,000 8,000 8% $100,000 - $124,999 6,000 6% $125,000 - $149,999 10,000 10% $150,000 - $199,999 21,000 21% $200,000 - $249,999 16,000 16% $250,000 - $299,999 11,000 11% $300,000 and over 29,000 29% (Percentages may not add up to 100 due to rounding)