New Home Sales Rise 7.3 Percent in AprilMay 24th, 2011 by Editor
Sales of newly built, single-family homes rose 7.3 percent to a seasonally adjusted annual rate of 323,000 units in April, their best pace since December of 2010, according to figures released by the U.S. Commerce Department today. The report also showed that the nationwide inventory of new homes for sale continued to fall to just 175,000 units in April, which is a new record low.
“While more buyers are starting to show up at builder sales offices this season, the level of actual buying activity remains quite low,” says National Association of Home Builders chief economist David Crowe. “The razor-thin inventory of new homes for sale is indicative of the caution that builders are exercising with regard to new projects as well as their inability to obtain financing for new-home production.”
New-home sales posted gains in every region in April. The Northeast registered a 7.7-percent gain, while the Midwest posted a 4.9-percent gain, the South posted a 4.3-percent gain and the West posted a 15.1-percent gain.
Meanwhile, the inventory of new homes for sale continued downward, falling 2.8 percent to 175,000 units in April–a new record low. This represents a 6.5-month supply at the current sales pace.