683,000 Annual Rate Of New Home Sales In April

Mortgage News June 2, 2023

According to the Census Bureau, the annualized rate of New Home Sales in April was 683,000, adjusted for seasonal fluctuations.

Estimates released today by the U.S. Census Bureau and the Department of Housing and Urban Development indicate that in April 2023, the sales of new single-family houses were recorded at an annual rate of 683,000, adjusted for seasonal fluctuations. This figure represents a 4.1 percent increase compared to the revised rate of 656,000 in March, and an 11.8 percent increase compared to the estimated rate of 611,000 in April 2022.

In April, the supply of homes decreased to 7.6 months, down from 7.9 months in March. The highest recorded supply was 12.2 months in January 2009, while the lowest was 3.3 months in August 2020. It’s important to note that the current supply level is significantly higher than the typical range considered normal, which is approximately 4 to 6 months.

The seasonally-adjusted estimate indicates that there were approximately 433,000 new houses available for sale at the end of April. This translates to a supply of 7.6 months, based on the current rate of sales.

Regarding inventory, the Census Bureau defines a house as being “for sale” when a permit to build has been issued in areas where permits are required, or when work has commenced on the footings or foundation in areas where permits are not required. Additionally, for a house to be considered “for sale,” no sales contract should have been signed, nor should any deposit have been accepted.

Since 1973, the Census Bureau has classified housing inventory into three categories: Not Started, Under Construction, and Completed.

Currently, the inventory of completed homes available for sale stands at 70,000, which is more than double the previous record low of 32,000 observed in 2021 and early 2022. This increase brings the inventory of completed homes closer to the normal level, indicating a rising trend.

Current homes under construction: 263,000, 17% lower than July 2022 peak. Homes not yet started: 100,000, close to record high. April 2023 saw 62,000 new homes sold (vs. 56,000 in April 2022). Highest April sales: 116,000 in 2005, lowest: 30,000 in 2011.

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Need a list of real estate agents in your area? Contact Jennifer Swanson at 260-223-9203 or Jennifer@SpecialtyContactDatabases.com


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