New home sales plummeted in April, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development…(Census Bureau)
- M-O-M: Sales of new single‐family houses fell 16.6% to a seasonally adjusted annual rate of 591,000
- Y-O-Y: New home sales were down 26.9% compared to the same time last year.
SWING & A MISS: Economists had projected an increase of 5.6%.
Inventory levels were the silver lining in this report with a much-needed increase…
- M-O-M: The seasonally‐adjusted estimate of new houses for sale was up 9% to 444,000 at the end of April.
- Y-O-Y: Inventory levels were up 41% when compared to the same time last year.
Despite a rise in inventory and a double-digit drop in sales, prices continued their climb…
- M-O-M: The median sales price of new houses sold in April was up 3.1% to $450,600.
- Y-O-Y: The median sales price was up 21% when compared to the same time last year.
It appears that rising rates are doing their job. Home sales are falling, inventory levels are rising and even though prices have yet to be impacted it seems as if that has to be right around the corner. I think it is safe to say that the housing market nationwide has officially begun to cool down.