Sales of new single-family homes jumped 16.2 percent in April to a seasonally adjusted annual rate of 981,000 units, according to a recent U.S. Commerce Department report. According to the National Association of Home Builders, a spate of builder discounts and “substantial non-price sales incentives” helped fuel the increase in sales. Additionally, the NAHB reported that buyers are seeking out lower-priced homes.
“We’re viewing the large jump in
new-home sales for April with a lot of caution, in view of the large
month-to-month volatility historically displayed by these statistics,” noted
NAHB chief economist David Seiders. “In addition, the April bulge may very well
have reflected favorable weather swings, particularly in the South region.”
Despite the jump in sales, the pace
remained more than 10 percent below last April’s figures. Seiders noted that
the NAHB is predicting “a gradual recovery process going forward, at least on a
The inventory of new homes for sale
edged down in April to 538,000 units, equivalent to a 6.5 months’ supply and
down from 8.1 months in March. Completed homes for sale were 33 percent of the
inventory, while units still under construction represented 51 percent of the
inventory. Units for-sale that were permitted but not yet started represented
almost 16 percent of the inventory level. The median length of time that
completed homes were on the market was 6.0 months in April.
Regionally, new-home sales
were up 27.8 percent in the South, 3.8 percent in the Northeast and 8.5 percent
in the West. Sales were down 4.0 percent in the Midwest.
NAHB: Builders help fuel jump in new homes sales
June 4, 2007