Updated: 23-May-23 10:23 ET
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Updated: 23-May-23 10:23 ET |
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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.
Category |
APR |
MAR |
FEB |
JAN |
DEC |
Total Sales |
683K |
656K |
631K |
649K |
636K |
Inventory (months) |
7.6 |
7.9 |
8.3 |
8.1 |
8.5 |
Median Price Y/Y |
-8.2% |
4.6% |
4.3% |
0.4% |
17.0% |