After several disappointing months, new home sales beat expectations in April and jumped 16.6% to a 619,000-unit annual rate, marking a new post-recession high.
The prior three months of data were also revised higher, pushing sales up 9.0% year to date.
Sales in the Northeast rose a staggering 52.8% for the month. Sales in the West and South also reported solid gains.
Home Prices Rise
The median sales price rose 7.8% on the month and is up 9.7% from a year ago. The share of home sales priced under $150,000 fell to 2%, down from 5% in March, indicating a waning presence of first-time homebuyers.
The stronger April report brings new home sales back in line with what most large homebuilders have been reporting and should raise expectations for the year ahead.
Inventory is Thin
New-home inventory ticked down to 243,000 homes for sale this month, which represents only a 4.7 months’ supply at the elevated April sales pace. Of the total inventory of new homes listed for sale, only 56,000 are completed, ready-to-occupy homes.
