Today, in the Calculated Risk Real Estate Newsletter: New Home Sales at 683,000 Annual Rate in April
Brief excerpt: The next graph shows new home sales for 2022 and 2023 by month (Seasonally Adjusted Annual Rate). Sales in April 2023 were up 11.8% from April 2022.
As expected, new home sales were up year-over-year.
As previously discussed, the Census Bureau overestimates sales, and underestimates inventory when cancellation rates are rising, see: New Home Sales and Cancellations: Net vs Gross Sales. This has reversed now since cancellation rates have started to decline. When a previously cancelled home is resold, the home builder counts it as a sale, but the Census Bureau does not (since it was already counted).
There are still a large number of homes under construction, and this suggests we might see a further increase in completed inventory over the next several months, but in general, this is a positive report for new home sales. You can subscribe at https://calculatedrisk.substack.com/.