New home sales increased 4.1% in April to a seasonally adjusted annual rate of 683,000, according to the U.S. Census Bureau. Compared with April 2022, new home sales were up 11.8%.
It’s the highest new home sales rate recorded since March 2022, according to the National Association of Home Builders.
“April saw an increase in new home sales as buyers sought new construction even as builders struggle to keep up with demand because of a shortage of distribution transformers and skilled construction workers,” NAHB Chief Economist Robert Dietz said in a statement. “Sales for 2023 thus far are still down 9.7% on a year-to-date basis due to elevated interest rates, and sales may weaken in the months ahead given the recent rise in interest rates.”
Regionally, month-over-month, new home sales increased 17.8% in the South and 11.8% in the Midwest. The West and Northeast recorded declines of 58.6% and 9.1%, respectively.
The median sales price in April was $420,800, with an average sales price of $501,000.
The full Census Bureau and Department of Housing and Urban Development report is available at this link.