New home sales rose 3.3% in April—better than expected—as forecasters were cautious after a 7.3% drop in March.
The Census Bureau reported Wednesday that sales of newly built single-family homes rose to a 343,000 seasonally adjusted annual rate in April from a 332,000 rate in March.
Sales in March and February were revised upward by 4,000 and 5,000 units, respectively.
Purchases of new homes jumped roughly 25% month-over-month in the Midwest and West, and fell 10% in the South. Sales in the Northeast rose nearly 8%.
Wall Street analysts had forecast that new home sales would come in at a 330,000 to 335,000 seasonally adjusted annual rate. Overall, new home sales are up 10% from April 2011.