U.S. New Home Sales Fell Last Month
23 May 2019 - 3:30PM
Dow Jones News
By Sharon Nunn and Harriet Torry
WASHINGTON--New home sales in the U.S. declined in April,
posting the largest monthly drop since the end of last year and
signaling the housing market is on weaker footing during the key
spring selling season.
Purchases of newly built single-family homes--a relatively
narrow slice of all U.S. home sales--declined 6.9% to a seasonally
adjusted annual rate of 673,000 in April, the Commerce Department
said Thursday. This was the largest month-on-month drop since
December of last year. Economists polled by The Wall Street Journal
had expected a 2.7% drop.
New-home sales declined in all regions but the northeast, with
purchases in the midwest and west notching the biggest monthly
drops since December 2018 too.
Still, the report offered positive signs for the housing market.
The department revised up its estimate of overall new-home sales in
March, and sales grew robustly in February and January. Meanwhile,
sales were up 7% in April from the prior year. Still, the rate of
new-home sales is well below levels clocked before the last
recession.
The months' supply of new homes for sale on the market was 5.9
in April, up from 5.7 a year ago. The median sales price of a new
home in April was $342,200, up from $314,400 last year.
The broader housing market has faltered for more than a year
because rapidly increasing prices, higher mortgage rates and a
shortage of inventory that have kept many potential buyers out of
the market. Sales of previously-owned homes, which make up the bulk
of housing market activity, continued to fall in April, according
to the National Association of Realtors.
Meanwhile, a separate Commerce Department report showed home
building across the U.S. increased last month, driven by an uptick
in single-family construction across most of the country.
Write to Sharon Nunn at sharon.nunn@wsj.com and Harriet Torry at
harriet.torry@wsj.com.
(END) Dow Jones Newswires
May 23, 2019 10:15 ET (14:15 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.