New Home Sales Rise Slightly Showing 'Potential Recovery'
Although existing home sales declined last month, new home sales held their ground in April with more than a half-percent rise. National Association of Home Builders (NAHB) reported the increase brought the seasonally adjusted annual rate to 623,000 units.
NAHB Chairman Dean Mon said in the report that the new home sales results "show the potential for housing to lead any recovery for the overall economy;" however, this could change as the country continues to battle the coronavirus.
"The April estimates from Census came in better than forecast, so there is a possibility of a downward revision in the next release," added NAHB Chief Economist Robert Dietz. "Nonetheless, the data matches recent commentary from builders and reflects recent gains in mortgage applications. Despite significant challenges in overall economic conditions, the month's supply held steady at a reasonably healthy level of 6.3."
April's new home sales may have proven positive, yet fell far below April 2019's record by more than 6%.
"Because the housing industry entered this downturn underbuilt, there exists considerable pent-up housing demand on the sidelines. The experience of the virus mitigation has emphasized the importance of home for most Americans."
—Andrew Michaels, editorial associate