New home sales plummeted from last month, however the level of housing inventory showed improvement, according to a joint release from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.
Sales of new single-family homes in April came in at a seasonally adjusted rate of 569,000 sales, a decrease of 11.4% from last month’s 642,000 sales. However, this is up 0.5% from last year’s 566,000 sales.
Brent Nyitray, iServe Residential Lending director of capital markets, pointed out in his note to clients that new home sales are still lagging behind population growth.
Surprisingly, the median sales price dropped to $309,200, down from last month’s $315,100.
The seasonally adjusted estimate of new homes for sale at the end of April remained steady at 268,000 homes. But with the lower rate of sales, this represents a 5.7-month supply of homes, up from 5.4 months in March.
While falling home prices and an increase in inventory could show a cooling housing market, time will tell if this was a one-month drop or a new trend.