US New Home Sales: Housing looks to be an upside surprise – Wells Fargo

Data released on Tuesday showed a positive surprise with a 0.6% rise in US New Home Sales, against expectations of a 21% slide. Analysts at Wells Fargo, point out the increase in new home sales is one of the only positive measures of economic activity in April. 

Key Quotes: 

“After plunging 13.7% in March, new home sales rebounded 0.6% in April to a 623,000-unit pace. Builders had said traffic was brisk throughout most of the month and applications for the purchase of a home have risen steadily in recent weeks.”

“Home sales rose in most parts of the country, including the Northeast. Sales in the South rose 2.4% to a 379,000-unit pace. Sales also rose 2.4% in the Midwest but fell 6.3% in the West, where stay-at-home orders were a bit more stringent.”

“The median price of a new home fell 8.6% from one year ago to $309,900. The drop is due to rising sales of homes priced below the median and fewer sales in higher-priced Western markets.”