ARLINGTON, Va.—New home sales were up 0.6% (623,000 units) in April from March's revised rate of 619,000 units.
NAFCU Chief Economist and Vice President of Research Curt Long noted that although uncertainty remains, "the housing market looks like it will hold up better than any other area of the economy this year."
“New home sales saw a surprising uptick in the middle of an economy battered by COVID-19, providing yet more evidence that if there is to be a strong recovery, it will be housing that leads the way,” Long noted. “The Mortgage Bankers’ Association’s purchase loan index has already achieved year-ago levels, and Redfin is reporting robust search activity.”
Sales were 6.2% lower compared to April 2019.
Median Home Price Decreases
The median new-home price, non-seasonally adjusted, decreased from $326,900 in March to $309,900 in April. Of note, April's prices were down 8.6% from a year ago.
Sales rose slightly in three of the four regions in April, with the Northeast growing 8.7% and the Midwest and South both rising 2.4%. However, sales in the Western region fell 6.3% during the month.
Based on current month sales, there were 6.3 months of supply in April, which was down slightly from 6.4 months of supply in March. The number of unsold homes left on the market was down from March at 325,000 units, representing a 3% reduction from year-ago inventory levels, Long said.