April new-home sales are up, but prices are at all-time low
May 24, 2007
By MARTIN CRUTSINGER
ASSOCIATED PRESS
WASHINGTON — Sales of new homes surged in April by the biggest amount in 14 years, but the median price of a new home dropped by the largest amount on record. The mixed signals left no clear picture of whether the worst of the nation’s housing slump is over.
The Commerce Department reported that sales of new single-family homes jumped by 16.2% in April to a seasonally adjusted annual rate of 981,000 units. That was far better than the tiny 0.2% gain that economists had been expecting.
However, the median price of a new home sold last month fell to $229,100, a record 11.1% decline from the previous month. The big price decline indicated that builders are slashing prices in an effort to move a huge overhang of unsold homes.
The jump in sales was the biggest increase since a 16.4% surge in new home sales that occurred in April 1993.
However, analysts cautioned against reading too much into the big gain, especially in light of other surveys showing that builder confidence has sunk in recent months over worries that troubles in the subprime mortgage market will further crimp demand in coming months.
There was also concern because all of the strength in sales came in one region of the country, the Northeast, which saw a surge of 43.1%.
Sales were down 28.1% in the Midwest and 25.4% in the West. Sales fell a smaller 3.4% in the South.
May 24, 2007
By MARTIN CRUTSINGER
ASSOCIATED PRESS
WASHINGTON — Sales of new homes surged in April by the biggest amount in 14 years, but the median price of a new home dropped by the largest amount on record. The mixed signals left no clear picture of whether the worst of the nation’s housing slump is over.
The Commerce Department reported that sales of new single-family homes jumped by 16.2% in April to a seasonally adjusted annual rate of 981,000 units. That was far better than the tiny 0.2% gain that economists had been expecting.
However, the median price of a new home sold last month fell to $229,100, a record 11.1% decline from the previous month. The big price decline indicated that builders are slashing prices in an effort to move a huge overhang of unsold homes.
The jump in sales was the biggest increase since a 16.4% surge in new home sales that occurred in April 1993.
However, analysts cautioned against reading too much into the big gain, especially in light of other surveys showing that builder confidence has sunk in recent months over worries that troubles in the subprime mortgage market will further crimp demand in coming months.
There was also concern because all of the strength in sales came in one region of the country, the Northeast, which saw a surge of 43.1%.
Sales were down 28.1% in the Midwest and 25.4% in the West. Sales fell a smaller 3.4% in the South.
No comments:
Post a Comment