A report from the Commerce Department shows that the sale of new homes jumped 16.6% last month to a seasonally adjusted rate of 619,000 from a revised total of 531,000 in March and sales of existing homes rose for the second straight month. While the market is showing positive signs, some are nervous about the possibility of a second housing bubble burst as the market approaches levels not seen since 2008.
Builders are now shifting their focus away from the construction of rental units, now that demand for new homes has increased:
The U.S. reported last week that new home construction climbed 6.6 percent to a seasonally adjusted annual rate of 1.17 million units in April.
Ground breakings are running ahead of last year's pace, largely because of a dramatic increase in the construction of single-family houses, especially in the Midwest and South.