New-home sales dropped by 6.2 percent on an annual basis, according to the Commerce Department’s Monthly report this week. However, home sales are up 0.6 percent over the revised March rate of 619,000—a positive sign the market will rebound.
New-Home Sales: 623,000
For-Sale Inventory: 325,000
Months’ Supply: 6.3
Median Price: $309,900
What the Industry’s Saying
“The April data for new home sales show the potential for housing to lead any recovery for the overall economy,” said Dean Mon, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Shrewsbury, N.J. “Because the housing industry entered this downturn underbuilt, there exists considerable pent-up housing demand on the sidelines. The experience of the virus mitigation has emphasized the importance of home for most Americans.”
“The April estimates from Census came in better than forecast, so there is a possibility of a downward revision in the next release,” said NAHB Chief Economist Robert Dietz. “Nonetheless, the data matches recent commentary from builders and reflects recent gains in mortgage applications. Despite significant challenges in overall economic conditions, the months’ supply held steady at a reasonably healthy level of 6.3.”