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New Home Sales Up for Year
But Down for Month for First Time in 2019

New Home Sales Up for Year

For the first time this year, fewer new homes were sold in the most current month that data is available than the month before it.

In spite of a 6.9% month-to-month decrease posted in April, new home sales are running 7.0% better than last year's pace. An upward revision of March's data added to the improved number and lower mortgage rates are being credited with an assist.

The Northeast actually had a good month in new home sales with an 11.5% gain while the other three regions all suffered losses: - 8.3% in the West, -7.4% in the Midwest and -7.3% in the South.

Another increase for the month was in homes priced above $300,000. The Wells Fargo Economics Group stated that "builder discounting of higher priced homes to clear rising inventories was likely a factor, which also had the effect of boosting the median price 8.8% year-over-year to $342,200."

Playing a role in the decrease in sales of new homes under $300,000 was a shortage of affordable homes according to the economics group. But they added, overall for the year, "More favorable buying conditions alongside lower mortgage rates this year have breathed some life back into home sales."

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December 5, 2019, 7:04 pm PDT

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