The decrease in April was expected because of a strong first quarter, says the NAHB’s chief economist
Newly built single-family homes saw a drop in sales for the first time this year in April, according to the National Association of Home Builders.
The latest data from the Department of Housing and Urban Development and the Census Bureau reported last month’s sales dropped 11.4% to a seasonally adjusted annual rate of 569,000 housing units.
“Despite some slowness this month, total new home sales in 2017 are up more than 11% from this time last year and builders are optimistic about future market conditions,” said NAHB Chairman Granger MacDonald. “We should see further gains in the months ahead as more prospective home buyers enter the market.”
The first quarter of 2017 was off to a good start, with the March sales rating the highest since 2007.
“New home sales were strong in the first three months of 2017, so some pullback in April is to be expected,” said NAHB Chief Economist Robert Dietz. “However, our forecast calls for new home sales to increase throughout the year, buoyed by rising household formations, continued job growth and tight existing home inventory.”
In April, the inventory for new home sales was 268,000 – a 5.7-month supply at the current sales pace – while the median sales price for new homes was $309,200.
New home sales in the South dropped 4%. There was a 7.5% drop in the Northeast, a 13.1% drop in the Midwest and a 26.3% drop in the West.
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The latest data from the Department of Housing and Urban Development and the Census Bureau reported last month’s sales dropped 11.4% to a seasonally adjusted annual rate of 569,000 housing units.
“Despite some slowness this month, total new home sales in 2017 are up more than 11% from this time last year and builders are optimistic about future market conditions,” said NAHB Chairman Granger MacDonald. “We should see further gains in the months ahead as more prospective home buyers enter the market.”
The first quarter of 2017 was off to a good start, with the March sales rating the highest since 2007.
“New home sales were strong in the first three months of 2017, so some pullback in April is to be expected,” said NAHB Chief Economist Robert Dietz. “However, our forecast calls for new home sales to increase throughout the year, buoyed by rising household formations, continued job growth and tight existing home inventory.”
In April, the inventory for new home sales was 268,000 – a 5.7-month supply at the current sales pace – while the median sales price for new homes was $309,200.
New home sales in the South dropped 4%. There was a 7.5% drop in the Northeast, a 13.1% drop in the Midwest and a 26.3% drop in the West.
Related stories:
Trading up homes can be difficult in today’s housing market
Construction of single-family built-for-rent homes declines
