Sales of newly-built homes surprised Wall Street, jumping 7 percent to an seasonally-adjusted, annualized 323,000 units last month.
In addition, the supply of new homes dropped to 6.5 months — a 2-month decrease from October 2010 and the best reading in a year.
The report runs counter to recent reports from the National Association of Homebuilders and the National Association of REALTORS® which suggest a looming housing slowdown. April’s New Home Sales report runs counter to that theory; it shows ongoing, steady, staggered improvement in terms of sales volume and sales inventory.
Broken-down by sales prices, the New Home Sales report also showed that homes are selling across all price tiers. The “luxury market” improved most:
- Up to $199,999 : +1,000 homes from March
- $200,000 to $399,999 : +2,000 homes from March
- $400,000 and over : +3,000 homes from March
These figures suggest that that move-up buyers — not first-timers — are driving the new home market. Homes under $200,000 now account for just 40% new home sales, down from 46% a year ago.
This backs up what I’ve been seeing locally, with lots of client interest in construction loans or buying new homes directly from builders. We have some incredible programs available for new construction, send me an email or give me a call, I’d love to help you!