May 24, 2006 — Sales of new U.S. homes surprised economists and stayed strong in April, the Commerce Department reported Wednesday. New-home sales rose 4.9% in April to a seasonally adjusted annual rate of 1.20 million, the highest level of the year. Economists surveyed by MarketWatch had been expecting the pace of new-home sales to cool to 1.15 million units, as part of a general slowdown underway in the housing sector. Economists cautioned against reading too much into the rise in April, but said the report fits in with the Federal Reserve’s expectation of an orderly decline in the market. This is the second straight monthly gain in new home sales after sales fell in the first two months of the year. Sales are down 5.7% on a year-over-year basis.
New-Home Sales Rise 4.9% [Real Estate Journal]