Sales of new single-family homes dropped 6.9 percent from March to April, but are up 7 percent year-over-year, according to the latest data released Thursday by the U.S. Census Bureau and the Department of Housing and Urban Development.
“Sales fell after a huge jump in March, despite interest rates moving lower and aiding affordability,” Tendayi Kapfidze, LendingTree’s chief economist said in a statement. “March sales were the highest since the financial crisis so a pull-back was always likely. The three-month average of sales, 688,000, was the highest since the financial crisis which is encouraging for continued growth.”
The median sales price for those homes clocked in at $342,200, according to the data. At the end of the month, there was 332,000 new homes for sale – or 5.9 months supply of inventory.
“Months supply of 5.9, down from 7.4 in December, could add to price pressures,” Kapfidze said. “A lack of supply for lower valued homes may also be contributing to the mix of homes sold including more homes above $500,000.”