We just got the latest look at the new home market from the Census Bureau. Sales rose 7.3 percent to a seasonally adjusted annual rate of 323,000 in April from 301,000 in March. That beat economists’ expectations for an unchanged reading, and it leaves sales at the highest level since December.
The number of homes for sale continued to decline, falling to 175,000 from 180,000 a month earlier. That’s the lowest level in the 48 years the Census Bureau has been keeping track. The “months’ supply at current sales rate” indicator also dipped to 6.5 from 7.2. That’s the lowest since the same month a year ago. Median prices rose 1.6 percent to $217,900 from $214,500 a month earlier. On a year-over-year basis, prices were up 4.6 percent.
We got a better-than-expected pop in new home sales in April, and a continued shrinkage in the amount of supply on the market. That’s something, I suppose. But industry players continue to lack confidence in future sales, and they remain extremely reluctant to build more homes. Intense competition from the used home market is the primary culprit. Until we clear the inventory overhang there, we’re just not going to get a noticeable increase in construction activity or hiring. I suspect that won’t happen until 2013 or 2014.
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Mike Larson graduated from Boston University with a B.S. degree in Journalism and a B.A. degree in English in 1998, and went to work for Bankrate.com. There, he learned the mortgage and interest rates markets inside and out. Mike then joined Weiss Research in 2001. He is the editor of Safe Money Report. He is often quoted by the Washington Post, Reuters, Dow Jones Newswires, Orlando Sentinel, Palm Beach Post and Sun-Sentinel, and he has appeared on CNN, Bloomberg Television and CNBC.
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i think those numbers, just like unemployment and inflation are rigged….