New Home Sales in the South Unexpectedly Fall in April
New home sales in the South dropped to a seasonally adjusted annual rate of 359,000 in April, down 4.8% from March and marking the lowest level since July 2022, according to the latest data from the U.S. Census Bureau. Despite the overall decline, the South continues to dominate new home sales, accounting for 56.7% of all activity.
Nationally: New home sales fell 4.7% to 634,000, the lowest level since February.
- The Northeast and the West saw significant declines, with sales down 21% and 7.3%, respectively.
- The Midwest was the only region to see growth, with a 10% increase, reaching its highest level since February 2022.
Supply Growth: Nationally, the months’ supply of new homes rose to 9.1 in April, up from 8.5 in March and the highest level since November 2022. This increase is not only due to falling sales demand but also because housing completions are at their second-highest level in 18 years.
Price check: The median sales price of new houses sold in April 2024 was $433,500, down 1.4% from March but still the second-highest level since September.
The Bottom Line: Despite the dip in new home sales, the South remains a significant player in the market. However, it is also clear that because of that dominance national data will be significantly impacted by changes that happen in the South that could belie what is happening in the other regionally markets.
