New-Home Sales Resume

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By David Urani

Not surprisingly, after a round of modestly better housing data, new-home sales for April were back up 3.3% to 343,000 after falling in March. All regions except for the South rose for the month. The Northeast was at the highest level of sales since January 2011, and the Midwest was the highest since December. In the meantime prices were mixed, with the median down slightly and the average up slightly.

We aren't really blown away by the numbers as it's a small gain for the month, and the sales level still remains below February's number. Nevertheless, we are encouraged by the consistency of the latest round of housing data points that suggest selling activity is on the way back up after hitting a rut earlier in the year. In the meantime, with a 5.1-month supply on the market, inventories are at historically normal levels and any further gains in sales can lift construction activity.

Of course, I suppose that, as with just about everything else, Europe (Greece) could derail the whole thing.

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