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>>

  • Dover Man Goes to Prison on Child Sex Charges

    Dover Man Sentenced for Child Sex Charges

    08/18/2017 15:16:00 -04:002017-08-18 19:16:00 GMT
    Friday, August 18 2017 3:22 PM EDT2017-08-18 19:22:31 GMT
    DOVER, Del.- A Dover man has been sentenced for sexually abusing a child who was in his care.Micah Smith, 41, was convicted by a jury in May of continuous sexual abuse of a child, sexual abuse of a child by a person in a position of trust, authority or sMore
    A Dover, Del. man has been sentenced to a decade behind bars for sexually abusing a child who was in his care.More
  • 7 Rescued After Boat Catches Fire off OC Coast

    7 Rescued After Boat Catches Fire off OC Coast

    08/18/2017 14:47:00 -04:002017-08-18 18:47:00 GMT
    Friday, August 18 2017 2:53 PM EDT2017-08-18 18:53:31 GMT
    Friday morning's boat fire nearly 14 miles off the Ocean City coast. (Photo credit: Coast Guard Station - Ocean City)Friday morning's boat fire nearly 14 miles off the Ocean City coast. (Photo credit: Coast Guard Station - Ocean City)
    The Coast Guard on Friday morning rescued seven people after the 35-foot boat they were on caught fire nearly 14 miles off the coast of Ocean City.More
    The Coast Guard on Friday morning rescued seven people after the 35-foot boat they were on caught fire nearly 14 miles off the coast of Ocean City.More
  • Photographers, Experts Say it's OK to Shoot Solar Eclipse with Smartphones

    Photographers, Experts Say It's OK to Shoot Solar Eclipse with Smartphones

    Friday, August 18 2017 2:53 PM EDT2017-08-18 18:53:15 GMT
    Friday, August 18 2017 2:53 PM EDT2017-08-18 18:53:15 GMT
    Amid the debate over whether or not shooting the solar eclipse with a smartphone will cause damage to the device, photographers and experts say most cell phones do not capture enough light to do any damage.More
    Amid the debate over whether or not shooting the solar eclipse with a smartphone will cause damage to the device, photographers and experts say most cellphones do not capture enough light to do any damage.More
  • Most Popular StoriesMost Popular StoriesMore>>

  • Two Wanted for Burglary, Theft in Delaware

    Two Wanted for Burglary, Theft in Delaware

    Thursday, August 17 2017 10:42 PM EDT2017-08-18 02:42:38 GMT
    Thursday, August 17 2017 10:42 PM EDT2017-08-18 02:42:38 GMT
    Delaware State Police are asking for assistance in locating two people wanted for multiple counts of burglary and theft.More
    Delaware State Police are asking for assistance in locating two people wanted for multiple counts of burglary and theft.More
  • Receptionist

    Receptionist

    WBOC & FOX21 has an immediate opening for a receptionist. 

    More

    WBOC & FOX21 has an immediate opening for a receptionist. 

    More
  • UD Coaches Claim Age, Sexual Orientation Led to Firings

    UD Coaches Claim Age, Sexual Orientation Led to Firings

    Friday, August 18 2017 7:42 AM EDT2017-08-18 11:42:00 GMT
    Friday, August 18 2017 7:42 AM EDT2017-08-18 11:42:00 GMT
    (Photo by Flickr user U.S. Army RDECOM, used under a Creative Commons license)(Photo by Flickr user U.S. Army RDECOM, used under a Creative Commons license)
    Two former volleyball coaches are suing the University of Delaware, claiming they were fired based on their age, sexual orientation and marital status.More
    Two former volleyball coaches are suing the University of Delaware, claiming they were fired based on their age, sexual orientation and marital status.More
Powered by Frankly

All content © Copyright 2000 - 2017 WBOC. All Rights Reserved. For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices