U.S. New Home Sales Slump in April

By Joshua Kirby

Sales of new single-family homes in the U.S. slipped sharply in April as high mortgage rates deter buyers. Here are the main takeaways from the Commerce Department report released Thursday:

--New home sales fell by 4.7% from March, reaching a seasonally adjusted rate of 634,000. The level for March was also revised down to 665,000.

--Sales had been expected to stand at 677,000, according to economists surveyed by The Wall Street Journal.

--Monthly new home sales data are volatile and often revised. Data for April came with a margin of error of 12%.

--Sales were 7.7% lower than in April 2023, adjusted for seasonal shifts.

--The estimate of new houses for sale was 580,000, representing a supply of 9.1 months at the current sales rate.

--Lower sales of new homes came after existing-home sales also slumped, decreasing for a second-straight month in April amid high rates and prices, according to figures released earlier this week.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

Corrections & Amplifications

This item was corrected at 10:38 a.m. ET to clarify that the level for March was also revised down to 665,000, not to 665,00.

(END) Dow Jones Newswires

May 23, 2024 10:24 ET (14:24 GMT)

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