New Home Sales Beat Expectations In April

New data released by the U.S. Census Bureau and the Department of Housing and Urban Development shows sales of newly built single-family homes rose 6.8 percent in April from the month before. The increase, which beat economists’ expectations for the month, put sales 26.1 percent above last year’s level. The results join other recent reports indicating that the housing market’s recovery may be building momentum. In fact, industry observers believe residential real estate – strengthened by an improved job market – is finally benefiting from years of pent-up demand, leading to an influx of young buyers looking to purchase their first home. Regionally, new-home sales surged in the Midwest, climbing 36.8 percent to a seven-year high. Elsewhere, the South saw a 5.8 percent increase, while the Northeast and West saw declines. Also in the report, the number of new homes for sale rose slightly but inventory overall is still tight. At the current sales pace, there is a 4.8-month supply of new homes available for sale. Typically, a six-month supply is considered a healthy market. More here.

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