New Home Sales Fall in April
|New home sales came in below expectations, falling 6.9% in April to a 673,000-unit pace. Data for March were revised upward, however, and sales are 7.0% ahead of the year-ago pace alongside lower mortgage rates.
Lower Rates Driving Trend of Improvement
- New home sales fell 6.9% from the upwardly revised 723,000- unit pace in March. However, sales are up 7.0% on a year-ago basis, and April’s drop marks the first monthly decline of 2019. More favorable buying conditions alongside lower mortgage rates this year have breathed some life back into home sales. Sales fell 8.3% in the West and 7.4% in the Midwest. The South posted a 7.3% drop, while the Northeast rose 11.5%.
Sales Weaken for Lower Priced Homes
- A shortage of more affordable homes likely played a role in the monthly drop, as sales of homes priced below $300,000 fell during April. Meanwhile, sales of homes priced above $300,000 increased during the month. Builder discounting of higher priced homes to clear rising inventories was likely a factor, which also had the effect of boosting the median price 8.8% year-over-year to $342,200. Months’ supply at the current sales pace rose to 5.9
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