New Home Sales Slip in April

(Image courtesy of U.S. Census Bureau)

Sales of new single-family homes in April were at a seasonally adjusted annual rate of 634,000, according to estimates released by the U.S. Census Bureau and the Department of Housing and Urban Development.

That’s down 4.7% from March (revised to 665,000) and down 7.7% from the April 2023 mark of 687,000.

The median sales price of new homes sold in the month was $433,500. The average price was $505,700.

The seasonally-adjusted estimate of new homes for sale at the end of the month was 480,000. That is a supply of 9.1 months at the current sales rate.

“The new-home market had been a relative bright spot in housing, but a variety of factors have converged to sap its momentum. The spring surge in mortgage rates has dampened demand, even amid falling new-home prices and an uptick in new-home inventory, which reached its highest point since 2008. The impact is clear in April’s new-home sales, which came in below expectations and the March data was revised downward as well,” said First American Deputy Chief Economist Odeta Kushi.

“New home sales are vitally important considering the continued shortage of homes in most markets and will continue to gradually increase with solid economic background and availability constraints in the existing market,” said Selma Hepp, CoreLogic Chief Economist.

“Also, the growth in new homes continues to be abetted by builders’ ability to offset falling housing affordability through price discounts, mortgage rate buy-downs and similar incentives, which will keep the overall share of new home sales elevated. Overall, the fundamentals for the new home market remain robust and will help fuel sales over the next few years,” she continued.