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U.S: New Home Sales Rise 6.4% in April
“Builders are gradually increasing sales, but tight credit conditions, particularly for first-time home buyers, are impeding a more robust recovery,” said Kevin Kelly, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Wilmington, Del.
“In a positive development, builders are adding inventory in anticipation of a further release of pent-up demand,” said NAHB Chief Economist David Crowe. “We are only about half-way back to what could be considered a normal market, but relatively low mortgage rates and affordable home prices are other factors that should help keep starts and sales on a slow upward trajectory in the months ahead.”
On a regional basis, new-home sales rose 47.4 percent in the Midwest and 3.1 percent in the South and held steady in the West. The Northeast posted a 26.7 percent decline.
The inventory of new homes for sale increased to 192,000 units in April. This is a 5.3-month supply at the current sales pace.