WASHINGTON - The pace of new single-family home sales surged by 16.6% to a 619,000 seasonally adjusted annual rate in April, well the 520,000 rate that was expected and the highest level since January 2008, data released by the Commerce Department Tuesday showed.
The month over month increase in sales was the largest since a 21.1% gain in January 1992.
The April surge was led by a 52.8% jump in the Northeast region to 55,000, the strongest pace for the region since October 2007. Sales in the large South were up 15.8% to the 352,000, the strongest pace since December 2007. Sales fell 4.8% in the Midwest and rose 18.8% in the West.
March sales were revised up to a 531,000 pace from the previously reported 511,000 rate, while February sales were revised up to 538,000 from the previously reported 519,000 pace. January sales were revised up to a 526,000 rate from the 521,000 rate reported in last month's report. Annual revisions were incorporated into the April report.
On an unadjusted basis, April sales up 22.0% from March and were up 27.1% from a year ago.
The supply of new homes for sale fell by 0.4% to 243,000 in April. This drop, combined with the jump in sales, lowered the months' supply to 4.7 months from 5.5 months in March. It was down from the 5.0 month supply in April 2015.
Housing starts and building permits both rebounded in April, suggesting supply should rise in the next few months.
The median sales price of new homes rose by 7.8% to a record $321,100 in April following a 2.8% decline in March. The median price was up 9.7% from April 2015.
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