US New Home Sales Tumbled In April As Prices Soared

With Case-Shiller reporting existing home price declines in half of America’s largest cities, and after two straight months of rip-roaring demand, NAR reports that New Home Sales in April tumbled 6.2% MoM (almost twice as bad as the 3.2% MoM decline expected). March’s 7.4% MoM spike was revised down bigly to just +3.4%, all of which left new home sales down 

Source: Bloomberg

Overall, new home sales have really gone nowhere for four years…

It seems lower mortgage rates did nothing to help new home sales…

Finally, while existing home prices are lower, median new home price rose 2.2% y/y to $422,500; average selling price at $508,800.

This was the biggest MoM jump in median new home prices since 2019…

Not great for affordability.