U.S. New Home Sales up 2.3 Percent in April - WBOC-TV 16, Delmarvas News Leader, FOX 21 -

U.S. New Home Sales up 2.3 Percent in April

Posted: Updated:
(Photo: MGN) (Photo: MGN)

WASHINGTON (AP)- New-home sales rose to a seasonally adjusted annual rate of 454,000 in April, the Commerce Department said Thursday. That was up 2.3 percent from March and just slightly below January's 458,000.
 
Both January and April had the fastest sales rates since July 2008.
 
The median price of a home sold in April was $271,600, the highest level on government records going back to 1993. The April price was 8.3 percent higher than in March and 13.1 percent higher than a year ago.
 
Steady job creation and near-record-low mortgage rates are spurring more Americans to buy homes.
 
With the April increase, sales are now 29 percent higher than a year ago, but sales are still below the 700,000 level considered healthy by economists.
 
The strength in April was led by a 10.8 percent rise in sales in the West. Sales in the South were up 3 percent but sales fell 16.7 percent in the Northeast and were down 4.8 percent in the Midwest.
 
Sales of previously owned homes rose in April to a seasonally adjusted annual rate of 4.97 million, the highest level in 3½ years.
 
Greater demand, along with a tight supply of available homes for sale, is also boosting prices in most markets and encouraging more construction.
 
Applications for permits to build homes rose in April to the highest level in nearly five years. While construction of new homes and apartments slipped a bit in April, the drop came one month after construction topped 1 million for the first time since June 2008.
 
Higher prices tend to make homeowners feel wealthier. That encourages consumers to spend more, which accounts for 70 percent of economic activity.
 
Federal Reserve Chairman Ben Bernanke cited the revival in housing as a significant benefit of the Fed's super-low interest rate policies.
 
"Higher prices of houses and other assets, in turn, have increased household wealth and consumer confidence, spurring consumer spending and contributing to gains in production and employment," Bernanke said in an appearance before the congressional Joint Economic Committee.
 
Several major homebuilders have reported strong annual increases in orders for the first three months of the year, Ryland Group Inc., said that its orders in April jumped 59 percent from a year earlier.
 
Though new homes represent only a fraction of the housing market, they have a sizable impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to data from the National Association of Home Builders.

 

 

  • Delmarvawide NewsDelmarvawide NewsMore>>

  • Jeff Gordon Visits Rehoboth Beach

    Jeff Gordon Visits Rehoboth Beach

    Thursday, August 21 2014 11:34 PM EDT2014-08-22 03:34:18 GMT
    Four-time Dover International Speedway winner Jeff Gordon spent the day exploring downstate Delaware Wednesday while in town to promote the Sept. 28 “AAA 400” NASCAR Sprint Cup Series race in Dover.More
    Four-time Dover International Speedway winner Jeff Gordon spent the day exploring downstate Delaware Wednesday while in town to promote the Sept. 28 “AAA 400” NASCAR Sprint Cup Series race in Dover.More
  • Dorchester Watermen Calling for Dredging in Busy Channel

    Dorchester Watermen Calling for Dredging in Busy Channel

    Friday, August 22 2014 1:30 AM EDT2014-08-22 05:30:37 GMT
    HOOPERS ISLAND, Md.- A popular channel near Hoopers Island, once dredged regularly, hasn't been cleaned up in at least four years.That's the headache watermen like Marcus Flowers Jr., who works out of the Barren Island Gap have to deal with."They used to keep it dredged out for us, but now, if we get a low tide, or even a normal tide, you have a struggle getting in and out without tearing all your stuff up." said Flowers."They" is the Army Corps of Engineers.Here's just how bad it's gotten. I...More
    HOOPERS ISLAND, Md.- A popular channel near Hoopers Island, once dredged regularly, hasn't been cleaned up in at least four years.That's the headache watermen like Marcus Flowers Jr., who works out of the Barren Island Gap have to deal with."They used to keep it dredged out for us, but now, if we get a low tide, or even a normal tide, you have a struggle getting in and out without tearing all your stuff up." said Flowers."They" is the Army Corps of Engineers.Here's just how bad it's gotten. I...More
  • Dorchester County Considers Abandoning Road

    Dorchester County Considers Abandoning Road

    Friday, August 22 2014 1:29 AM EDT2014-08-22 05:29:50 GMT
    CROCHERON, Md.- To the visitor, Phillips Gunning Club road is not in the best of shape. It's got potholes that will put your suspension to work and make your cd player skip, and it has some sections where it looks like there might not be a road at all in a couple of years. But with the county considering possibly abandoning it, people in Crocheron say that it's a gem of the community that should be kept intact.Driving down the road is no picnic. Culverts are in desperate need of attention, th...More
    CROCHERON, Md.- To the visitor, Phillips Gunning Club road is not in the best of shape. It's got potholes that will put your suspension to work and make your cd player skip, and it has some sections where it looks like there might not be a road at all in a couple of years. But with the county considering possibly abandoning it, people in Crocheron say that it's a gem of the community that should be kept intact.Driving down the road is no picnic. Culverts are in desperate need of attention, th...More
Powered by WorldNow

All content © Copyright 2000 - 2014 Worldnow and WBOC. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service