New home sales rebounded to a seasonally adjusted annual rate of 517,000 homes in April, pushing sales 26.1 percent higher than a year ago. However, sales remained below the rate seen in January and February
Sales Up but Slim Inventories Remain
- New home sales are now 26.1 percent higher than a year ago, corroborating data from the homebuilder sentiment surveys. In addition, revisions to prior months on net were slightly positive. Despite the rebound, sales were higher in February.
- Although the number of homes for sale at the end of the period ticked up to 205,000, inventory still remains low by historical standards and the months’ supply fell to 4.8 from 5.1 in March.
Strength Everywhere but the Northeast
- New home sales in the Northeast remained weak, falling 5.6 percent in the month and 19.0 percent over the year. Elsewhere sales have been considerably stronger. Despite a monthly loss in the West, sales are still 39.8 percent higher than a year ago, while in the South and the Midwest sales are up 26.4 percent and 20.0 percent, respectively. Inventories are low across the regions, but are exceptionally weak in the Midwest.
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