Sales of new single-family homes climbed 16.6 percent in April, reaching the highest sales pace since January 2008, the Commerce Department reported this week. Newly built, single-family homes rose to a seasonally adjusted annual rate of 619,000 units in April.
“Builders remain optimistic about the housing market, and this month’s jump in new home sales is a positive sign that growing demand will keep the housing sector on an upward trajectory through the spring buying season,” says Ed Brady, chairman of the National Association of Home Builders.
The median sales price of new homes sold in April was $321,100. New-home sales saw the biggest jump last month in the Northeast, where sales of new homes surged 52.8 percent month-over-month. New-home sales jumped 18.8 percent in the West and by 15.8 percent in the South. The Midwest was the only major region to post a decrease in new-home sales in April, with sales falling 4.8 percent compared to the month prior.
Find out what could hamper new-home sales in the future, according to NAHB.
Housing analysts expect new home sales to continue to climb in 2016. “Rising home sales combined with tight inventory will translate into increased housing production as we move onward in 2016, especially as job creation continues and mortgage rates remain low,” says NAHB Chief Economist Robert Dietz.
Reprinted from REALTOR® Magazine Online (http://realtormag.realtor.org), May 25, 2016, with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2016. All rights reserved.