New Home Sales Way Up, Prices Down
Diana Heeb Bivona
The Commerce Department reported this week that sales of new homes rose an astounding 16.2% in April. This marked the largest increase in 14 years. However, while sales were up, the average new home price had dropped 11.1% to $229,100, suggesting that home builders are attempting to move their large inventories.
Officials also warn not to become too excited over the one month gains, particularly as many recent surveys have shown builder confidence has shrunk and subprime worries remain high.
Unit sales by region:
- Northeast increased 43.1%
- Midwest dropped 28.1%
- West dropped 25.4%
- South dropped 3.4%
Popularity: 12%