The United States April new home sales rebounded, rising at the fastest pace since the past 8 years. Prices jumped to eight-year high, indicating healthy demand amid limited supplies in the nation’s housing market.
Purchases of new, single-family homes jumped 16.6 pct from a month earlier to a seasonally adjusted annual rate of 619,000, the Commerce Department said on Tuesday. Median price of new homes rose to USD 321,100 last month, up 9.7 pct from a year earlier and the highest level on record.
Sales of existing homes, which account for the bulk of the market, rose for the second straight month in April, the National Association of Realtors said on Friday. A separate Commerce Department report last week showed housing starts rebounded in April, leaving builders on pace to break ground on 778,000 single-family homes this year, reports said.
“The stronger April report brings new home sales back in line with what most large homebuilders have been reporting and should raise expectations for the year ahead,” Wells Fargo Securities said in a research note.
Sales in the Northeast rose a staggering 52.8 percent on the month. Sales in the West and South also reported solid gains. The share of home sales priced under $150,000 fell to 2 pct of sales, down from 5 pct in March, indicating a waning presence of first-time homebuyers, the report added.
The material has been provided by InstaForex Company – www.instaforex.com