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.