Zillow: April New Home Sales Up

New U.S. home sales increased in April, up both from one month ago and one year ago, Zillow.com said today in its most recent monthly analysis. In a housing market where existing inventory is tight and affordability challenges are lurking around every corner, the site said, prospective home buyers are happy to see more new construction homes entering the market.

Among the report’s highlights:

• There were 683,000 new single-family home sales nationwide in April, up 4.1 percent from March and up 11.8 percent from April 2022, according to the U.S. Census Bureau.
• The median sales price of new houses sold in April was $420,800.
• The seasonally-adjusted estimate of new houses for sale at the end of April was 433,000, a supply of 7.6 months at the current sales rate.

“Home builders are fitting nicely into this spring housing season that is starved for new inventory,” said Nicole Bachaud, senior economist for Zillow. “Home buyers are hungry for anything they can afford, and home builders are happy to meet them where they are.”

The backlog of new construction homes started in the last year or so is making its way online and the majority of builders and projects are offering some incentives to offset affordability constraints, Bachaud said. “This is helping to bump up new home sales at a time when existing home sales are sliding,” she said, and that boost in new home sales is likely contributing to the increase in builder sentiment seen in May with more home builders optimistic about the future.

Posted May 23, 2023