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The sales of new single-family houses in April were at a seasonally adjusted annual rate of 634,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development (HUD).

The April estimate is 4.7% below the revised March rate of 665,000 and is 7.7% below the April 2023 estimate of 687,000.

“This month, the Census data diverged from Zonda’s sales figures as well as sentiment on the ground. Builders have noted that demand is slower given rates holding in the 7%s, but consumers shopping today are still drawn to the new-home market over existing,” says Ali Wolf, chief economist at Zonda.

The median sales price of new houses sold in April was $433,500, while the average sales price was $505,700.

“Home builders finished construction on new houses faster than they sold them in April,” says Holden Lewis, home expert at NerdWallet. “The inventory of newly completed, but unsold, houses is growing. Look for builders to offer incentives, including rate buy-downs, to sell these homes this spring and summer.”

The seasonally adjusted estimate of new houses for sale at the end of April was 480,000, which represents a supply of 9.1 months at the current sales rate.

Wolf adds, “Importantly, there’s been some focus on the high months of supply number in the Census report. This calculation includes homes not started, under construction, and completed. If you look at just the completed inventory, the market still has less than two months available.”