New Home Sales Surge in April
Sales of new, single-family homes took a 16.6% jump in April over March, according to U.S. Census Bureau and the Department of Housing and Urban Development. Sales prices for the homes also continued to increase, suggesting a stronger market for builders.
In an article by Bloomberg the forecast for the annualized rate of new home sales was 523,000. The 16.6 percent jump took that rate to 619,000. The increase was the biggest since 1992 and pace the strongest since January 2009. The median selling price increased 9.7%, to a record $321,100.
The news article said the jump in the number of homes sold and awaiting the first shovel in the ground indicates home construction will help add to economic growth in the second quarter.
The NAHB posted a news release with its Chief Economist Robert Dietz stating that “rising home sales combined with tight inventory will translate into increased housing production as we move onward in 2016, especially as job creation continues and mortgage rates remain low."
The inventory of new homes for sale was 243,000 in April, which is a 4.7-month supply at the current sales pace, the news release noted.
However, in a related post the NAHB said in a survey of builders, 64% said that the supply of lots in their markets was “low” or “very low.” This is the highest that number has been since NAHB began collecting this data in 1997.
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