New home sales took a hit for the fourth-straight month in April 2022, falling well short of economic estimates and hitting a low not seen since the height of pandemic uncertainty in April 2020 as buyers grappled with the new reality of 5 percent-plus mortgage rates and rising home prices.

New single-family home sales dropped by 16.6 percent month-over-month, tallying the biggest monthly drop in nearly nine years, while sales plunged 26.9 percent year-over-year to a seasonally adjusted annual rate of 591,000, according to data released by the U.S. Census Bureau and the Department of Housing and Urban Development on Tuesday. An estimate by a Bloomberg survey of economists projected a rate of 749,000 sales in April.

By contrast, in April 2021, new single-family homes sold at a seasonally adjusted annual rate of 809,000.

“Rising mortgage rates and rising home prices have combined causing the market to level off at more balanced supply and demand conditions,” RCLCO’s Kelly Mangold said in a statement emailed to Inman.

“The market continues to feel impacts of geopolitical turmoil and supply chain issues, yet millennial households continue to demand for-sale housing, and many are migrating from high-cost coastal markets to high-growth Sun Belt markets where builder inventory is higher.”

New homes sold at a median sales price of $450,600 in April, up from March’s revised estimate of $435,000. Meanwhile, the average sales price in April was $570,300, up from. March’s revised estimate of $522,500.

By the end of April, the seasonally adjusted estimate of new homes for sale was 444,000, an 8.3-months’ supply of homes at the current sales rate, up from March’s revised estimate of a 5.9-months’ supply of homes.

The increase in new-home sales inventory and cooling consumer demand likely indicate a drop in construction starts to come, Chief Economist for the National Association of Homebuilders Robert Dietz tweeted on Tuesday. He also noted the sharp contrast between sales prices of new homes year over year.

Despite the uncertain economic forces at hand, Mangold noted that the overall state of the housing market remains strong.

“The for-sale housing market has remained a strong performer during the entirety of the pandemic, and despite the somewhat uncertain economic conditions — demand for additional new housing remains strong,” she said in a statement.

Last week, a report released by the National Association of Realtors showed that existing-home sales also declined, for the third consecutive month.

New home sales are a leading indicator of where the market is heading in the near-term, and at least one Twitter user suggested the latest numbers are a sign of a recession.

Email Lillian Dickerson

homeselling | HUD | NAR
Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×