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New home sales slide in April as prices continue to rise

by John Yellig

New home sales slide in April as prices continue to rise

Modern Mediterranean architecture style home in the historic City of Coral Gables located in Miami.

New home sales slid 5.9% on a monthly basis in April to 863,000 units, the U.S. Census Bureau and the Department of Housing and Urban Development reported. Year over year, however, sales were up 48.3%. 

Sales were down in all regions except for the West, where they rose 7.9% to 164,000 homes. The South saw sales fall 8.2% to 545,000, while they were down 8.3% to 110,000 in the Midwest and down 13.7% in the Northeast. 

At the end of April, there were 316,000 new homes for sale, representing a 4.4-month supply of homes. 

The median sales price of new homes sold in April was $372,400, up from $334,200 in March and $310,100 a year ago. 

National Association of Home Builders Chief Economist Robert Dietz said the rising cost of homes is driving down the pace of sales as many would-be homebuyers find themselves priced out. 

“After a period of builders holding back price increases, new home prices were 20% higher year-over-year per the April Census data,” Dietz said in a press release. “Higher prices have priced out buyers, particularly at the lower end of the market. A year ago, 45% of new home sales were priced below $300,000. In April 2021, only 27% of new home sales were priced below $300,000.” 

 

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