New home sales improved 3.3% in April to an annualized pace of 343,000 units in April. The Census report also revised up March’s pace by 1%. The pace of new home sales is now nearly 10% above its year-ago levels.
Similarly to existing home sales, gains in new home sales were widespread geographically, with only the south reporting a decline in sales in April. Sales in the Midwest and West were both strong.
Supply of new homes on the market remains extremely tight at 5.1 months. This measure has remained below the six month mark for the past six months, indicating an extremely tight supply. This is a result of an extremely low level of new construction.
Although the median home price fell in April, to $230,000, there are signs of firming prices. The median home price is a volatile measure month to month, but in April, the median price is 4.9% above one year ago.
Read Census' report.