US new home sales for April were 591K vs 751K estimate as the 30-year fixed rate has now risen to 5.36%. This is 16.6 percent (±10.4 percent) below the revised March rate of 709,000 and is 26.9 percent (±13.7 percent), below the April 2021 estimate of 809,000. The median sales price of new houses sold in April 2022 was $450,600. The average sales price was $570,300.
US new home sales for April 2022
The seasonally adjusted estimate of new houses for sale at the end of April was 444,000. This represents a supply of 9.0 months at the current sales rate
The median sales price increased 19.7% yr/yr to $450,600 while the average sales price jumped 31.2% to $570,300.
At the current sales pace, the supply of new homes for sale stood at 9.0 months, versus 6.9 months in March and 4.7 months in April 2021. A six-month supply is typically associated with a more balanced market.
The percentage of new homes sold for $399,999 or less accounted for 36% of new homes sold versus 44% in March and 58% one year ago.
New home sales month-over-month/year-over-year by region:
- Northeast (-5.9%/+17.1%);
- Midwest (-15.1%/-25.5%);
- South (-19.8%/-36.6%);
- West (-13.8%/-12.4%).
The report confirms the effect of rates and new home sales remain concentrated in higher-priced homes, as inflation pressures, pushed by supply constraints and labor shortages, are curtailing the building of lower-priced homes and pinching affordability for lower-income buyers.
Existing home sales account for 90% of US transactions and are calculated on a contract close basis. New home sales account for the remaining 10% and are based on contract signings.
The big question is after the surge in rates and slash in rates how much damage has been done with the massive wealth erosion.
From The TradersCommunity News Desk