New Home Sales Hold Steady in April
May 26, 2020
In a sign that the housing market is stabilizing in the wake of the COVID-19 pandemic, sales of newly built, single-family homes rose 0.6 percent to a seasonally adjusted annual rate of 623,000 units in April, according to data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The April rate is 6.2 percent lower than the April 2019 pace.
"The April data for new home sales show the potential for housing to lead any recovery for the overall economy," says Dean Mon, chairman of the National Association of Home Builders. "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."
"The April estimates from Census came in better than forecast, so there is a possibility of a downward revision in the next release," says Robert Dietz NAHB chief economist. "Nonetheless, the data matches recent commentary from builders and reflects recent gains in mortgage applications. Despite significant challenges in overall economic conditions, the months' supply held steady at a reasonably healthy level of 6.3."