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.
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From The TradersCommunity News Desk