New Home Sales, Prices Rise in April

Annual rate tops economists' predictions, sales fall in South

   

New Home Sales, Prices Rise in April

Sales of newly built single-family homes grew 3.3% in April, hitting an annualized rate of 343,000 units, up from an annual pace of 332,000 in March, the Commerce Department said on Wednesday.

April’s rate outpaced the predictions of economists who forecast a 335,000 annual rate for the month, Reuters noted. New home sales in April increased 9.9% over the same time last year.

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Sales of new homes jumped 28.2% in the Midwest and 27.5% in the West states. Northeast states saw a smaller increase of 7.7%, while sales of new homes in the South fell 10.6%.

The new data come on the heels of yesterday’s report from the National Realtors Association showing that resales of existing homes also jumped last month.

Prices for new homes rose 0.7% in April compared to March, boosting the median price of a newly built home to $235,700, up 4.9% from last year. The Commerce Department reported that the inventory of newly built homes inched up 1.4% last month.

Last week, the government reported a strong rebound in housing starts in April. While the housing news continues to bolster confidence among homebuilders, the fallout from the housing crisis continues to cause homebuilder shares to lag.


Article printed from InvestorPlace Media, http://investorplace.com/2012/05/new-home-sales-prices-rise-in-april/.

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