Briefing.com: New Home Sales

Updated: 23-May-23 10:23 ET

April New Home Sales

Updated: 23-May-23 10:23 ET

Highlights

New home sales increased 4.1% month-over-month in April to a seasonally adjusted annual rate of 683,000 units (Briefing.com consensus 660,000) from a downwardly revised 656,000 (from 683,000) in March.
On a year-over-year basis, new home sales were up 11.8%.

Key Factors

The median sales price declined 8.2% yr/yr to $420,800 while the average sales price declined 10.9% to $501,000, pinched by sales weakness in the more expensive Northeast and West regions.
New home sales month-over-month/year-over-year by region: Northeast (-58.6%/-46.7%); Midwest (+11.8%/+20.6%); South (+17.8%/+23.4%); and West (-9.1%/-2.8%).
At the current sales pace, the supply of new homes for sale stood at 7.6 months, versus 7.9 months in March and 8.5 months in April 2022.
The percentage of new homes sold for $399,999 or less accounted for 47% of new homes sold versus 39% in March and 33% one year ago.

Big Picture

The key takeaway from the report is that higher mortgage rates are impeding stronger new home sales activity, evidenced by the sales declines in the higher-priced Northeast and West regions that reflect increased affordability pressures created by the higher mortgage rates.