There’s a shift happening with U.S. new home construction; things are picking up.
New sales of single-family houses soared 14.8 percent to an approximate annual rate of 504,000 units (that’s a lot of units!). The April gain followed a 29.8 percent surge in March, the biggest monthly increase in 47 years.
On the flipside, builders are having to cut prices to sell their units and home prices are are week. The Case Shiller Home Price Index for March is flat or falling and is being pulled down by an endless flood of distressed properties hitting the market. Distressed home sales made up around one quarter of all home sales in the U.S for the beginning of this year.