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New Home Sales Continue at a Record Pace in April
Sales of new single-family homes hit an all-time record pace for the second month in a row in April, accelerating to a seasonally adjusted annual rate of 1.316 million units, the Commerce Department reported ast week. This was 0.2% above the revised record sales pace set in March, and 13.3% higher than one year earlier.
“The drive for homeownership is stronger than ever and builders don’t see this demand diminishing anytime soon,” said NAHB President David Wilson. “We definitely don’t expect to be taking summer vacations this year.”
“The housing market is still decidedly on the move,” said NAHB Chief Economist David Seiders. “Buyer demand continues to be boosted by a strong economy and favorable market fundamentals — a mortgage rate structure that remains low and stable, growing employment and increases in household income and new household formations.
“At the pace we have been maintaining through the first part of the year, we expect new-home sales in 2005 to challenge last year’s record sales,” Seiders added.
Two of four regions across the country posted higher home sales in March. Sales were up 37.2% in the Northeast and 2.8% in the West. Sales dipped 0.5% in the
Midwest
and 5.3% in the South.
There was a 440,000-unit inventory of new homes for sale in April, a 4.1 months’ supply at that month’s sales pace.
“The inventory situation is very manageable,” said Seiders. “Many of the homes included are under construction and not yet completed, and a significant portion haven’t been started yet. Builders are intentionally keeping their inventories lean in anticipation of increased mortgage rates later this year, and because a limited amount of land is available for building in many areas.”
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