Please ensure Javascript is enabled for purposes of website accessibility
US New-Home Sales Post Slight Gain in April
gvw_ap_news
By Associated Press
Published 5 years ago on
May 26, 2020

Share

BALTIMORE — U.S. new home sales ticked up 0.6% in April, a surprising gain amid the coronavirus outbreak that hints at the relative health of potential buyers.

The Commerce Department reported Tuesday that sales of new single-family homes rose slightly to a seasonally adjusted annual rate of 623,000 last month. This followed a decline of 13.7% in March as businesses and schools were closed in an effort to contain the virus. Over the past 12 months, sales are down 6.2%.

COVID-19 disrupted what appeared to be signs of growth in the housing market as low mortgage rates attracted buyers. Stuck in social isolation, they chose last month to purchase homes that have yet to be constructed — a category that surged 26.5% from March and accounted for all of the sales growth in April. Sales of homes already under construction fell slightly, while sales those already completed declined 13.6% from a year ago.

The Government Report Has a High Margin of Error

Realtor.com senior economist George Ratiu suggested that the shelter-in-place orders might have encouraged more people to search for homes to meet their needs in a post-coronavirus economy.

“(T)hey discovered the value of additional space and updated kitchens,” he said. “As remote work policies are being extended into 2021 by a growing number of companies, and likely to become permanent in some cases, demand for home offices is projected to grow. If homebuilders can respond to these shifting preferences, sales of new homes may see a swifter rebound in the months ahead.”

The median price for a new home sold last month was $309,900, dropping 8.6% from a year ago. Prices appeared to dip because fewer homes sold last month in the range of $300,000 to $399,999 and the range of $750,000 and above.

The government report has a high margin of error, so the April figures could be revised in the coming months. New-home sales rose in the Northeast, Midwest and South, but slumped in the West.

RELATED TOPICS:

DON'T MISS

Trump Administration Directs All Federal Diversity, Equity and Inclusion Staff Be Put on Leave

DON'T MISS

Baseball’s Newest Hall of Famers: Suzuki, Sabathia, Wagner

DON'T MISS

‘Once in a Lifetime’ Snow Hits Parts of the US South

DON'T MISS

Trump Temporarily Halts Leasing and Permitting for Wind Energy Projects

DON'T MISS

Fresno Man Who Dealt Deadly Fentanyl Pill Gets 80-Month Prison Term

DON'T MISS

What’s Next for EVs as Trump Moves to Revoke Biden-Era Incentives?

DON'T MISS

US Throws out Policies Limiting Arrests of Migrants at Sensitive Locations like Schools, Churches

DON'T MISS

Visalia Police Find Man Shot Near Shopping Center. Tips Sought.

DON'T MISS

Convicted Jan. 6 Rioter Benjamin Martin Still Going to Prison

DON'T MISS

Is Lawsuit on Planned Reedley Job Center a ‘Shakedown’?

UP NEXT

Musk’s Straight-Arm Gesture Embraced by Right-Wing Extremists

UP NEXT

Trump’s Executive Orders: Reversing Biden’s Policies

UP NEXT

Trump Returns to Power After Unprecedented Comeback, Emboldened to Reshape US

UP NEXT

Trump to Release Records on the Assassinations of the Kennedys and Martin Luther King

UP NEXT

Walmart Breaks into Luxury Resale Market, Will Offer Chanel, Fendi, Prada, Other Brands

UP NEXT

The Big Chill: Siberian Air to Make Trump Swearing-in Coldest in 40 Years

UP NEXT

Proposed Rules Would Require Nutrition Info, Allergen Warnings on Alcohol Labels

UP NEXT

South African Police End Mine Rescue Operation With at Least 78 Dead and 246 Survivors

UP NEXT

Google Signs Deal With AP to Deliver Up-to-Date News Through Its Gemini AI Chatbot

UP NEXT

Jeffrey Epstein’s Estate Got a $112 Million Tax Refund

Trump Temporarily Halts Leasing and Permitting for Wind Energy Projects

8 hours ago

Fresno Man Who Dealt Deadly Fentanyl Pill Gets 80-Month Prison Term

8 hours ago

What’s Next for EVs as Trump Moves to Revoke Biden-Era Incentives?

8 hours ago

US Throws out Policies Limiting Arrests of Migrants at Sensitive Locations like Schools, Churches

8 hours ago

Visalia Police Find Man Shot Near Shopping Center. Tips Sought.

8 hours ago

Convicted Jan. 6 Rioter Benjamin Martin Still Going to Prison

9 hours ago

Is Lawsuit on Planned Reedley Job Center a ‘Shakedown’?

9 hours ago

Much of the Damage from the LA Fires Could Have Been Averted

11 hours ago

CA Sued the Tar Out of Trump the First Time Around. How Did It Do?

11 hours ago

Israel’s Top General Resigns over Oct. 7 Failures, Adding to Pressure on Netanyahu

12 hours ago

Trump Administration Directs All Federal Diversity, Equity and Inclusion Staff Be Put on Leave

WASHINGTON — President Donald Trump’s administration is directing that all federal diversity, equity and inclusion staff be put on pai...

4 hours ago

President Donald Trump signs an executive order as he attends an indoor Presidential Inauguration parade event at Capital One Arena, Monday, Jan. 20, 2025, in Washington. (AP/Evan Vucci)
4 hours ago

Trump Administration Directs All Federal Diversity, Equity and Inclusion Staff Be Put on Leave

Ichiro Suzuki in Yankee Pinstripes
7 hours ago

Baseball’s Newest Hall of Famers: Suzuki, Sabathia, Wagner

People walk past the 1900 Storm memorial sculpture on Seawall Blvd. during an icy winter storm on Tuesday, Jan. 21, 2025 in Galveston, Texas. (Brett Coomer/Houston Chronicle via AP)
7 hours ago

‘Once in a Lifetime’ Snow Hits Parts of the US South

The five turbines of Block Island Wind Farm operate, Dec. 7, 2023, off the coast of Block Island, R.I., during a tour organized by Orsted. (AP File)
8 hours ago

Trump Temporarily Halts Leasing and Permitting for Wind Energy Projects

Photo of Mexican Oxy, fentanyl laced blue pills
8 hours ago

Fresno Man Who Dealt Deadly Fentanyl Pill Gets 80-Month Prison Term

President Donald Trump talks about the Endurance all-electric pickup truck, made in Lordstown, Ohio, at the White House, Sept. 28, 2020, in Washington. (AP File)
8 hours ago

What’s Next for EVs as Trump Moves to Revoke Biden-Era Incentives?

A Border Patrol truck rides along the border wall in Sunland Park, N.M., Tuesday, Jan. 21, 2025. (AP/Andres Leighton)
8 hours ago

US Throws out Policies Limiting Arrests of Migrants at Sensitive Locations like Schools, Churches

Police are investigating after a man was found shot near a Visalia shopping center and transported to Kaweah Health.
8 hours ago

Visalia Police Find Man Shot Near Shopping Center. Tips Sought.

Help continue the work that gets you the news that matters most.

Search

Send this to a friend