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

‘It’s Living Hell’: Nurses Say CA Addiction Recovery Program Ended Their Careers

DON'T MISS

Santa Who? Bizarre Christmas Traditions Stealing the Holiday Spotlight

DON'T MISS

New Decisions Boost California’s Zero-Emission Vehicle Mandate, but Major Hurdles Remain

DON'T MISS

Only $20K More to Bring Dolly Parton’s Imagination Library to Fresno

DON'T MISS

Jeffrey Sachs Warns of Looming US War With Iran

DON'T MISS

Cat House on the Kings Urgently Needs You to Donate Dollars and Adopt Your New Best Friend

DON'T MISS

The Surprising Sexual Politics of Nicole Kidman’s Kinky ‘Babygirl’

DON'T MISS

Why It’s Hard to Control What Gets Taught in Public Schools

DON'T MISS

FDA Approves Weight-Loss Drug to Treat Obstructive Sleep Apnea

DON'T MISS

In a Calendar Rarity, Hanukkah Starts This Year on Christmas Day

UP NEXT

A Look at the $100 Billion in Disaster Relief in the Government Spending Bill

UP NEXT

US Deportations Surge to Highest Level in a Decade Before Trump Takes Office

UP NEXT

White House Pushes to Find American Journalist Abducted in Syria

UP NEXT

Liberal Donors Plot to Overturn Republican House Majority in 2026

UP NEXT

The ‘Murder Hornet’ Has Been Eradicated From US, Officials Say

UP NEXT

Supreme Court Will Hear Arguments Over the Law That Could Ban TikTok

UP NEXT

Trump’s Picks for Top Health Jobs Not Just Team of Rivals but ‘Team of Opponents’

UP NEXT

Most US Teens Are Abstaining From Drinking, Smoking and Marijuana, Survey Says

UP NEXT

Mystery Drone Sightings Continue in New Jersey and Across the US. Here’s What We Know

UP NEXT

Drone Sightings Lead to Airspace Shutdown at Ohio Military Base, Arrests Near Boston Airport

Only $20K More to Bring Dolly Parton’s Imagination Library to Fresno

4 hours ago

Jeffrey Sachs Warns of Looming US War With Iran

20 hours ago

Cat House on the Kings Urgently Needs You to Donate Dollars and Adopt Your New Best Friend

20 hours ago

The Surprising Sexual Politics of Nicole Kidman’s Kinky ‘Babygirl’

21 hours ago

Why It’s Hard to Control What Gets Taught in Public Schools

21 hours ago

FDA Approves Weight-Loss Drug to Treat Obstructive Sleep Apnea

21 hours ago

In a Calendar Rarity, Hanukkah Starts This Year on Christmas Day

22 hours ago

A Look at the $100 Billion in Disaster Relief in the Government Spending Bill

22 hours ago

It’s Eggnog Season. The Boozy Beverage Dates Back to Medieval England but Remains a Holiday Hit

22 hours ago

9-Year-Old Among 5 Killed in Christmas Market Attack in Germany

23 hours ago

‘It’s Living Hell’: Nurses Say CA Addiction Recovery Program Ended Their Careers

Bobbie Sage thought nursing would be her salvation. She was trapped in an abusive relationship with four kids and looking for a steady incom...

3 hours ago

3 hours ago

‘It’s Living Hell’: Nurses Say CA Addiction Recovery Program Ended Their Careers

3 hours ago

Santa Who? Bizarre Christmas Traditions Stealing the Holiday Spotlight

3 hours ago

New Decisions Boost California’s Zero-Emission Vehicle Mandate, but Major Hurdles Remain

4 hours ago

Only $20K More to Bring Dolly Parton’s Imagination Library to Fresno

20 hours ago

Jeffrey Sachs Warns of Looming US War With Iran

20 hours ago

Cat House on the Kings Urgently Needs You to Donate Dollars and Adopt Your New Best Friend

21 hours ago

The Surprising Sexual Politics of Nicole Kidman’s Kinky ‘Babygirl’

21 hours ago

Why It’s Hard to Control What Gets Taught in Public Schools

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

Search

Send this to a friend