Washington, DC, May 24, 2006--Sales of new homes surprised economists and stayed strong in April, the Commerce Department reported Wednesday.
New home sales rose 4.9% in April to a seasonally adjusted annual rate of 1.20 million, the highest level of the year.
Economists had been expecting the pace of new homes to cool to 1.15 million units, as part of a general slowdown underway in the housing sector.
This is the second straight monthly gain in new home sales after sales fell in the first two months of the year. Sales are down 5.7% on a year-over-year basis.
The supply of new homes on the market rose 2.4% in April to 565,000 units, representing a 5.8-month supply. This is down from 6.0-month supply in March.
March's new home sales were revised lower by the Commerce Department to 1.142 million from 1.213 million.
The government cautions that its housing data are subject to large sampling and other statistical errors. It can take up to six months for a trend in sales to emerge. New home sales have averaged 1.17 million per month over the past six months, down from 1.20 million per month in the same period ended in March.
The median price of a new sold home rose 2.8% in April to $238,500 compared with the previous month. Median prices are up just 0.9% in the past year
