Across the US, new home sales keep falling

The Northeast was the only region that saw an uptick in sales in April, new government data shows

May.May 24, 2019 11:19 AM
New home sales slowed in April by 6.9 percent

New home sales slowed in April by 6.9 percent

Sales of new homes nationwide dropped in April by their largest monthly percentage this year, with the results coming amid rising inventory and prices.

Sales for those homes dropped 6.9 percent last month to an annualized pace of 673,000, according to a Wall Street Journal report on the U.S. Commerce Department figures. Sales declined in all regions of the country except the Northeast. Existing home sales nationwide, which make up the bulk of transactions, also dropped in April.

Despite that, sales rose 7 percent from April 2018, according to the report, but are still well under pre-recession figures, the Journal reported. And the median sales price for a new home last month was $342,000 — a nearly $30,000 increase from a year prior.

Supply was also up, to 5.9 months from 5.7 months in April 2018.

A slow April followed a strong March for new homes, when sales hit a 16-month high of 692,000 annualized, a 4.5 percent jump over February.

Part of that can be pinned on a drop in mortgage rates following months of steady increases.

Ian Shepherdson, chief economist at Pantheon Macroeconomics, told the Journal that the housing market remains healthy, and has rebounded from a weak fourth quarter following natural disasters around the country.

Housing starts have been somewhat slow this year, as homebuilders struggle to keep costs low amid rising material and labor costs. Groundbreakings also hit an eight-month low in February. [WSJ]Dennis Lynch 

Related Articles

New York City Councilman Donovan Richards sponsored a bill that now requires the city’s affordable housing plan to actively address racial segregation. (Credit: Getty Images and iStock)

Racial inequality in homeownership across US is sharpest in New York: report

Eric Wu, co-founder and CEO of Opendoor

Aggressive iBuyer Opendoor acquires title and escrow company

Fredrik Eklund (left), Julia Spillman and John Gomes (Photo by Guerin Blask)

Here are 5 takeaways from TRD’s deep dive into Eklund-Gomes’ national expansion

137 Saxon Mist Drive (Credit: Scoop Nashville and Benchmark)137 Saxon Mist Drive (Credit: Scoop Nashville and Benchmark)

Nashville broker posts oral sex selfie alongside kitchen and pool listing pics

From left: Paul Manafort with Trump Tower, Jeffrey Epstein, and Bernie Madoff with 133 East 64th Street (Credit: Getty Images, CityRealty, and Wikipedia)

How do brokers get listings from the Department of Justice?

Jacob Sudhoff and Scott Durkin (Credit: Sudhoff Companies, Emily Assiran, iStock)

Douglas Elliman is coming to Texas

Gary Keller of Keller Williams (Credit: iStock and Wikipedia)

Here’s how much it will cost you to sell your home on an iBuying site

US housing market sees another month of rising prices but declining sales figures

US home sales slide again in June as prices hit all-time high