New home sales fall in April
Sales of newly built, single-family homes fell 6.7% to a seasonally adjusted annual rate of 673,000 units in April after a sharp upwardly revised March report, according to the latest report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
The March sales pace of 723,000 units was the highest monthly rate since the Great Recession, and the April figure was the third-highest pace. The decline in April also follows three straight months of gains.
"After a challenging final quarter of 2018, data for the start of the year shows stabilization and modest growth for home sales,” said Greg Ugalde, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Torrington, Conn. “Our builder surveys show that traffic is steadily increasing. The challenge facing builders is how to deal with ongoing supply-side constraints such as a lack of buildable lots and labor that are putting upward pressure on housing costs.”
The inventory of new homes for sale was 332,000 in April, representing a 5.9 months’ supply. The median sales price was $342,200. The median price of a new home sale a year earlier was $314,400.
Regionally, sales in April fell 7.3% in the South, dropped 7.4% in the Midwest, and declined 8.3% in the West. Sales rose 11.5% in the Northeast.
On a year to date basis, new home sales are up 1.3% in the Midwest, 6.7% in the West and 10.3% in the South but fell 17.6% in the Northeast.
“The strong March sales pace was due to a combination of lower interest rates and the use of builder price incentives,” said NAHB Chief Economist Robert Dietz. “At the same time, the April sales report was a solid number coming off a very strong March reading.”
The March sales pace of 723,000 units was the highest monthly rate since the Great Recession, and the April figure was the third-highest pace. The decline in April also follows three straight months of gains.
"After a challenging final quarter of 2018, data for the start of the year shows stabilization and modest growth for home sales,” said Greg Ugalde, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Torrington, Conn. “Our builder surveys show that traffic is steadily increasing. The challenge facing builders is how to deal with ongoing supply-side constraints such as a lack of buildable lots and labor that are putting upward pressure on housing costs.”
The inventory of new homes for sale was 332,000 in April, representing a 5.9 months’ supply. The median sales price was $342,200. The median price of a new home sale a year earlier was $314,400.
Regionally, sales in April fell 7.3% in the South, dropped 7.4% in the Midwest, and declined 8.3% in the West. Sales rose 11.5% in the Northeast.
On a year to date basis, new home sales are up 1.3% in the Midwest, 6.7% in the West and 10.3% in the South but fell 17.6% in the Northeast.
“The strong March sales pace was due to a combination of lower interest rates and the use of builder price incentives,” said NAHB Chief Economist Robert Dietz. “At the same time, the April sales report was a solid number coming off a very strong March reading.”