New home sales in the US fell much more than expected in
Sales slumped 11.4% at a seasonally adjusted annual rate of
569,000, the Census Bureau said in its monthly report.
Economists had forecast that sales of new single-family homes
fell 1.8% at a seasonally adjusted annual rate of 610,000,
according to Bloomberg.
Sales in March, which were revised higher, rose for a
third-straight month and lifting the pace at the start of
the busy spring selling season towards the highs set in
Most of the sales, however, were not made in the affordable
end of the market where homes cost less than $200,000. Even
though there’s demand from buyers, a shortage of affordable
homes, and prices rising faster than wage growth, is keeping many
would-be shoppers out of the market.
In April, sales in the West fell by 26.3%, the most since October
2010. Sales did not rise in any other region.