NEW YORK, May 23 (Xinhua) -- U.S. new-home sales rose unexpectedly in April to the highest level since February 2022, likely helped by builder incentives aimed at alleviating affordability challenges.
Purchases of new single-family homes increased nearly 11 percent last month to a 743,000 annual rate, boosted in particular by the South and Midwest, according to government data released on Friday.
"The gain indicates that the new-homes market is holding up better than the resale market, reflecting the ability of builders to cut prices and offer sales incentives," noted Bloomberg News about the development. Sales of previously owned homes have been lackluster even as more homeowners list their properties.
"However, sharp downward revisions to the prior three months tempered the optimism," said the report. Moreover, the greater sales activity failed to make much of a dent in the inventory of homes.
"The jump in new-home sales looks like a statistical illusion, rather than a genuine pick-up in demand," Samuel Tombs, chief U.S. economist at Pantheon Macroeconomics, was quoted as saying. "A downward trend in sales still looks likely to emerge over coming months, given that new mortgage rates remain very high."
