By Dr Denver H. Bubble
Forecasters were expecting new home sales to fall 2.5% month over month in April 2019, but they were not prepared for this crash that occurred. New home sales tumbled 6.9% month over month after a positive revision for March 2019. Inventory supplies rising did not help. April’s supply was at 5.9 months of inventory versus 5.6 for the prior month.
One factor not helping sales are the ever climbing prices making housing even more unaffordable. New home sales prices rose 8.8% year over year, pushing the median home price to $342,200. This rise was the biggest year over year increase since Feb 2018. The average selling price was at $393,700. Month over month saw national median home prices climb an astounding 11.9% far outpacing the increase in Denver. It will be interesting to see what May 2019 prices look like, will they continue to rise in the face of every headwind?
Image source: Zero Hedge