New Home Sales Rise Unexpectedly

According to a new government report released recently, sales of new homes across the United States rose an unexpected 3.3 percent in April from the prior month, to a seasonally adjusted annual pace of 526,000 homes.

Although activity rose over the month, sales of new homes in the 12 months to April have dived a hefty 42 percent in the midst of a persistent housing market slump. Turnover of new homes has fallen steadily in the past two years, excepting some month-on-month gains, amid one of the worst US housing market downturns in decades.

The median sales price of new houses sold in April rose 9.1 percent compared with March to 246,100 dollars, marking the highest median price level since November of last year. The improvement in overall new home sales marked the highest level of sales since February, but sales have tumbled sharply from the market’s red-hot days in late 2005 and early 2006 when over one million new homes on a seasonally adjusted basis were being bought each month.

A Commerce Department report also showed the average sales price of a new home in April was 321,000 dollars, marking a 10 percent gain from a month earlier.