Sales of new single‐family houses increased again in April, according to estimates released by the U.S. Census Bureau and the Department of Housing and Urban Development.
The seasonally adjusted annual rate came in at 683,000, or 4.1% above the revised March rate of 656,000 and 11.8% above the April 2022 estimate of 611,000.
“Today’s report continues to support our view that new-home sales will remain comparatively resilient as the lack of existing homes for sale pushes prospective buyers toward new homes,” says Doug Duncan, chief economist at Fannie Mae. “Another positive sign is the strength shown by both sales and for-sale inventories of new homes not yet started.”
The median sales price of new homes sold in April was $420,800, while the average sales price was $501,000.
“Today’s new-home sales report reinforces the strength seen in the new-home market throughout 2023, with a notable caveat. New-home prices were down in April compared with last year, a direct result of builders working to address affordability issues via price cuts and product changes,” says Zonda chief economist Ali Wolf. “These adjustments have been well received by consumers, who are scooping up available properties. In fact, new-home sales are now at the highest level since March 2022.”
The seasonally adjusted estimate of new houses for sale was 433,000 at the end of April, representing a 7.6-month supply at the current sales rate.
“In a housing market where existing inventory is tight and affordability challenges are lurking around every corner, many prospective home buyers are happy to see more new-construction homes entering the market,” says Nicole Bachaud, senior economist at Zillow. “Home builders are fitting nicely into this spring housing season that is starved for new inventory. Home buyers are hungry for anything they can afford, and home builders are happy to meet them where they are.”
