The economy keeps failing to live up to claims by critics of the Trump administration that the economy is teetering on a recession.
Sales of new single-family homes surged in April, with the pace of sales rising to a seasonally adjusted annual rate of 743,000 units, the U.S. Census Bureau and Department of Housing and Urban Development reported Friday. That’s a 10.9 percent increase from March and 3.3 percent above the level from a year earlier, though both comparisons fall within margins of error that leave statistical significance uncertain.
The South and Midwest regions led the gains, with sales up 11.7 percent and 35.5 percent, respectively, from March. The Northeast, by contrast, saw a sharp 14.8 percent monthly decline in sales.
The April numbers mark the fastest sales pace since early 2023 and suggest some resilience in the new home market, even as mortgage rates remain elevated and affordability continues to be a headwind.
Inventories Shrink, Prices Edge Higher
The inventory of new homes for sale declined slightly to 504,000 units, down 0.6 percent from March but still 8.6 percent above the April 2024 level. At the current sales pace, this represents a supply of 8.1 months, down from 9.1 months in March but still somewhat elevated by historical standards.
The median sales price rose modestly to $407,200, up from $403,700 in March but 2.0 percent below the median from a year ago. The average price, however, rose more sharply to $518,400, up 3.7 percent on the month and 3.6 percent year-over-year.
The data show continued strength in mid-range price tiers, with homes priced between $300,000 and $499,999 accounting for just over half of April’s sales. Homes under $300,000 made up only about 15 percent of the market.
Upward Revisions and Regional Divergence
With this release, the Census Bureau revised seasonally adjusted figures going back to January 2020, a move that slightly adjusted trends in past months. Regionally, the year-over-year picture remains mixed: the Midwest and South posted modest gains from April 2024, while the Northeast and West saw declines.
The new home market continues to reflect a bifurcated economy, with demand supported by new household formation and limited resale inventory, but constrained by affordability challenges and financing costs.
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