New Home Sales Rise In April

Sales of new homes rose in three of four United States sectors in April, leading to an overall rise home sales for the month.

Sales of newly built, single-family homes rose 3.3 percent in April to a seasonally adjusted annual rate of 526,000 units, according to the U.S. Commerce Department.

The median sales price of new homes sold in April 2008 was $246,100, while the average sales price was $321,000.

“The modest bounce-back in new-home sales recorded for April followed a sharp decline in March and belies the fundamental weakness that continues to exist in the nation’s housing market,” NAHB Chief Economist David Seiders said. “Indeed, sales were down 42 percent on a year-over-year basis, the largest such reversal since September 1981.”

April’s preliminary sales pace of 526,000 units was equivalent to the previously reported sales pace for March. However, the Commerce Department this month revised March’s reading substantially downward to 509,000 units – 11 percent below the revised February reading.

Sales rose in three out of four regions in April. The Northeast posted a 41.7 percent gain that erased an equivalent decline in the previous month, while the Midwest and West recorded gains of 5.8 percent and 8.3 percent, respectively. The South, which is the nation’s largest housing market, posted a 2.4 percent decline.

The inventory of new homes for sale declined 2.4 percent in April to 456,000 units, which is a 10.6-month supply at the current sales pace. Completed homes accounted for 40 percent of total new homes for sale, up from 33 percent a year earlier, and the median number of months for sale since completion rose to eight – the highest since mid-1991.

Sources: Commerce Department, NAHB