New Home Sales Jump 4.1% in April

This article was originally written by Doug Short. From 2016-2022, it was improved upon and updated by Jill Mislinski. Starting in January 2023, AP Charts pages will be maintained by Jennifer Nash at Advisor Perspectives/VettaFi.

This morning's release of the April new home sales from the Census Bureau came in at 683K, up 4.1% month-over-month from a revised 656K in March. This is above the forecast of 663K and the highest level in over a year. The median home price is now at $420,800, down $35K from March on a nominal basis.

Here is the opening from the report:

New Home Sales
Sales of new single‐family houses in April 2023 were at a seasonally adjusted annual rate of 683,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 4.1 percent (±11.8 percent)* above the revised March rate of 656,000 and is 11.8 percent (±15.1 percent)* above the April 2022 estimate of 611,000

Sales Price
The median sales price of new houses sold in April 2023 was $420,800. The average sales price was $501,000. [
Full Report]

For a longer-term perspective, here is a snapshot of the data series, which is produced in conjunction with the Department of Housing and Urban Development. The data since January 1963 is available in the St. Louis Fed's FRED repository here. We've included a six-month moving average to highlight the trend in this highly volatile series.

Over this time frame, we see the steady rise in new home sales following the 1990 recession and the acceleration in sales during the real estate bubble that peaked in 2005. Since 2011, we have seen a similar rise that has only recently retracted.