A sign advertising lots for sale to build luxury homes in Deale, Md., near… (MCT )
New home sales climbed strongly in April, an indication that a long-awaited building market comeback is strengthening.
Sales of newly built, single-family homes rose 2.3% above the prior month and were 29% above the same period last year. New homes sold at a seasonally adjusted annual rate of 454,000 units, the Commerce Department reported.
“Home builders are enjoying a great start to the 2013 home selling season amid short supplies,” wrote Credit Suisse economists Jill Brown and Jonathan Basile, in an emailed analysis.
The overall housing market has rebounded this year as mortgage-interest rates remain low and inventory is tight. Sales of previously owned U.S. homes increased in April, hitting their highest level in nearly four years, the National Assn. of Realtors reported.
Sales of newly built homes are important for the overall economy as the boost from construction helps to create jobs. Building has been limited, however, due to the high cost of land, supplies and labor compared to the relative low prices of homes.
The median sales price for new homes was $271,600 last month. Inventory remained tight with an estimated 156,000 new houses for sale at the end of April. That represents a supply of 4.1 months at the current pace.
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