Photo: Robert Clark
Despite the sales dip recorded in April, new US home sales remain on an upswing and reflect builders’ overall growing confidence in the housing market.
New home sales remained near post-recession highs as spring homebuying season officially kicked off in April, according to a new report released yesterday by the National Association of Home Builders (NAHB).
Nationally, new home sales dropped 1.5 percent from the previous month to a seasonally adjusted annual rate (SAAR) of 662,000 units in April. However, this was still 11.6 percent above April 2017 estimate of 593,000 units.
In addition to adjusting for seasonal effects, April’s reading of 662,000 units is the number of homes that would sell if this pace continued for the next year, says NAHB.
March 2018’s reading was downwardly revised to 672,000 units (SAAR).
“Builders are optimistic that more prospective buyers will enter the market in the months ahead,” NAHB Chairman Randy Noel says in the digital release.
Over the last month, new home sales were up 11.1 percent in the Northeast and 0.3 percent in the South in April. Sales remained unchanged in the Midwest and dropped 7.9 percent in the West — following a “very strong” reading in March.
And with the spring homebuying season currently underway, optimism among builders is on the rise.
“Builders are optimistic that more prospective buyers will enter the market in the months ahead,” says Noel.
A strong economy might just bring more buyers into the marketplace this spring.
“With job growth, rising incomes and overall economic strengthening, we can expect housing demand to continue to grow, particularly among millennials and other newcomers to the market,” NAHB Senior Economist Michael Neal says in the digital release.
Meantime, the national median sales price of new homes sold in April was $312,400, down from the $335,400 recorded the previous month.
A “new home sale” occurs when a sales contract is signed or a deposit is accepted and homes can be in any stage of construction (not yet started, under construction or completed).
Click here to read the entire release.