New Home Sales Jump 16% in April

Washington, DC, May 24, 2007—New home sales in April spiked 16% to a seasonally adjusted annual rate of 981,000, according to a Commerce Department report. Analyst were anticipating a rate of 865,000.

The increase was attributed to falling prices. The median price of a new home was $229,100 in April, down 10.9% in the past year.

The inventory of unsold homes fell by 1.5% to 538,000, representing a 6.5-month supply. In March, the inventory was at 8.1 months.

Sales in April were down 10.6% compared with April 2006. Sales in the first four months of 2007 were 20% lower than in the first four months of 2006. April sales were led by a 28% gain in the South and an 8.5% gain in the West.