- Prior month 0.656M (revised from 0.683M previously reported)
- Sales of new single-family houses in April 2023 were at a seasonally adjusted annual rate of 683,000 versus 655,000 expected
- This is a 4.1% increase from the revised March rate of 656,000 and an 11.8% increase from the April 2022 estimate of 611,000.
- The median sales price of new houses sold in April 2023 was $420,800, while the average sales price was $501,000. Last month the median sales price was $449,800.
- The seasonally-adjusted estimate of new houses for sale at the end of April 2023 was 433,000 versus 432,000 last month
- This inventory represents a supply of 7.6 months at the current sales rate.
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Supply remains an issue. New home sales are a fraction of the existing home sales. The existing home sales supply is something like 2.6 months well below what is normally 6.0 months. There is a problem in the housing market homeowners are locked into low rates with large equity gains and are choosing to try to rent their house versus selling their house. This adds to the supply issue for new buyers. Nevertheless, as yields move higher (the 30-year average mortgage rate is close to 7% again), and affordability remains an issue, the prices seem to be capped.