Purchases of new homes in the U.S. surged in April to the highest level since the start of 2008, pointing to a robust spring selling season for builders, Commerce Department figures showed Tuesday.
Key Points
- Rose 16.6 percent to 619,000 annualized rate (forecast was 523,000)
- Monthly increase was biggest since 1992, while pace was strongest since January 2008
- Median selling price jumped 9.7 percent to a record $321,100
- Number of homes sold but not yet under construction climbed to 209,000, the highest since May 2007
Big Picture
The rebound in purchases of new properties, combined with stronger demand for previously owned homes, signals housing is being energized by healthy employment gains and cheap borrowing costs. The jump in the number of homes sold and awaiting the first shovel in the ground indicates home construction will help add to economic growth in the second quarter. Full Article
