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April’s New Residential Sales Show Continued Improvement in Housing Market

house-graphup [1]According to jointly released estimates [2] by HUD [3] and the U.S. Census Bureau [4], sales of new single-family houses in April 2015 increased 6.8 percent from last month to a seasonally adjusted annual rate of 517,000 units. The March rate was 484,000 units and is 26.1 percent above the estimate of 410,000 units for April 2014.

The median sales price of new houses sold in April 2015 was $297,300, while the average sales price was $341,500. The seasonally adjusted estimate of new houses for sale at the end of April was 205,000, representing a supply of 4.8 months at the current sales rate.

HUD and Census Bureau residential sales data is estimated from sample surveys are subject so sampling variability as well as nonsampling error including bias and variance from response, nonreporting, and undercoverage. A full explanation of how the data is calculated can be found at Census.gov. The organizations also provide estimates of houses sold and for sale by stage of construction on a seasonally adjusted basis and not seasonally adjusted basis.

The National Association of Home Builders [5] (NAHB) weighed in on the April’s increases in home sales in a recent press release [6]. The organization noted that regionally, home sales were mixed, increasing 36.8 percent in the Midwest and 5.8 percent in the South. The Northeast dropped 5.6 percent and the West fell 2.3 percent.

“Sales are moving forward and our builder members are telling us they are starting to see more activity as more buyers get off the fence and enter the marketplace,” said Tom Woods, chairman of the NAHB and a home builder from Blue Springs, Missouri.

Chief economist of NAHB, David Crowe added that, “Following an unusually low sales report in March, today’s numbers are consistent with other data we’ve seen recently and indicate a continuing, gradual improvement in the housing market.”

HUD and the U.S. Census Bureau will release new residential sales data for May 2015 on June 23.

View the full report: Census.gov [2]