New home sales as of the end of April were at a seasonally adjusted annual rate of about 619,000, an increase of 16.6% compared with the revised March rate of 531,000 and an increase of 23.8% compared with the April 2015 estimate of about 500,000, according to estimates released by the U.S. Census Bureau and U.S. Department of Housing and Urban Development.
It was the strongest month for new home sales since January 2008.
The median sales price of a new home sold in April was $321,100; the average sales price was $379,800.
As of the end of April, there were about 243,000 new homes for sale – a 4.7-month supply at the current sales rate.
“Builders remain optimistic about the housing market, and this month’s jump in new home sales is a positive sign that growing demand will keep the housing sector on an upward trajectory through the spring buying season,” says Ed Brady, chairman of the National Association of Home Builders (NAHB), in a statement.
“Rising home sales combined with tight inventory will translate into increased housing production as we move onward in 2016, especially as job creation continues and mortgage rates remain low,” adds Robert Dietz, chief economist for NAHB.
Regionally, new home sales increased 52.8% in the Northeast, 18.8% in the West and 15.8% in the South. Sales fell by 4.8% in the Midwest.