WASHINGTON-New home sales unexpectedly jumped in April, rising by an annualized 14.8% from 439,000 units in March to 504,000 units in April. Sales were up by 47.8% on a year over year basis.
The jump came as a surprise as existing home sales reported just a few days earlier were disappointing. New home inventory fell from 6.2 months of supply to 5 months of supply, while the total number of unsold homes left on the market declined by 7%.
While sales rose, values continued to fall as the median new home non-seasonally adjusted price, fell by 9.7% from $219,600 in March to $198,400 in April. Prices fell 9.5% on a year over year basis.
NAFCU Economist Katrin O'Connor suggested that new home sales are likely to dip again over the next few months but stabilize towards the end of the year. But the market will likely be held back by the strong competition from foreclosure sales and could be further affected by additional economic instability.
