New Home Inventories Continue to Shrink in April
The number of newly built single-family homes on the market shrank 4.2% to 297,000 units in April, thinning supplies to their lowest level since May 2001, according to figures released by the Commerce Department on May 28. The report noted that April’s pace of new-home sales held virtually even with the previous month, at a seasonally adjusted annual rate of 352,000 units.
"The fact that the new-homes inventory is now below the 300,000 mark shows that builders have made substantial progress in winnowing down their backlogs to a much more comfortable level," noted NAHB Chairman Joe Robson.
April was the 24th consecutive month in which the number of unsold new homes declined.
"This continued reduction in the new-homes inventory helps bring supply in line with demand, which is an important step toward the market's recovery. We can expect the pace of new home sales to bounce along the bottom a bit before picking back up towards the end of this quarter," said NAHB Chief Economist David Crowe.
Sales of newly built, single-family homes climbed a marginal 0.3% to 352,000 units in April from a downwardly revised pace in March.
The inventory of new homes for sale in April represented a 10.1-month supply at the current sales pace.
Regionally, the pace of new home sales was mixed in April. No change was recorded in the Northeast or Midwest, while the South posted a nearly 2% increase and the West declined 3.8%.
Tax Credit Web Site Looks at Opportunity of a Lifetime
Builders and other industry professionals can help spur home sales by referring prospective first-time home buyers to www.federalhousingtaxcredit.com. The NAHB Web site provides detailed information on the $8,000 federal tax credit for first-time home buyers included in the economic stimulus legislation signed into law by President Obama.
Consumers can use the Web site to find information on the tax credit — including a detailed question and answer section. It also includes information about other housing-related and small business measures in the legislation and a number of home-buying resources for consumers.
Spanish Version Also Available Online
A Spanish version of this increasingly popular Web site is also available to provide detailed information on the tax credit to Spanish-speaking first-time home buyers.
Industry professionals are encouraged to highlight either tax credit Web site when marketing to their potential first-time home buyer market.
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