Builders remain confident in new homes market
There was a 1.5% dip in sales of newly-built single-family homes in April but the overall trend is for a strong market.
The latest data from the HUD and US Census Bureau shows a seasonally adjusted annual rate of 662,000 units were sold last month, down from March but still close to the pre-recession high.
“With job growth, rising incomes and overall economic strengthening, we can expect housing demand to continue to grow, particularly among millennials and other newcomers to the market,” said NAHB Senior Economist Michael Neal. “However, builders need to manage rising construction costs as well as regulatory hurdles to keep their homes competitively priced.”
Northeast leads sales
The Northeast led the gains at 11.1% with the South posting the only other gain, a modest 0.3%. There was no change in sales in the Midwest but the West saw a drop of 7.9% following a very strong March.
The median price of new houses sold in April was $312,400 and there were 300,000 homes for sale, 5.4 months of supply at the current pace.
“Even with this minor dip, new home sales continue to trend upward and reflect builders’ overall confidence in the market,” said NAHB Chairman Randy Noel, a custom home builder from LaPlace, La. “Builders are optimistic that more prospective buyers will enter the market in the months ahead.”
