In April, sales of new homes in the United States unexpectedly rose, with builders lowering prices to attract buyers.
The U.S. Commerce Department’s Census Bureau said on Friday, May 23, that sales of new homes surged by 10.9% last month, with a seasonally adjusted annual rate of 743,000 units, the highest level since February 2022.
Sales for March were revised down from the previously reported 724,000 units to 670,000 units. New home sales are counted at the time of signing contracts, and monthly data can be volatile and subject to significant revisions.
Economists surveyed by Reuters had previously expected new home sales, which account for about 15.7% of U.S. housing sales, to drop to 693,000 units in April.
The median sales price of new homes in April fell by 2.0% from the same period last year to $407,200. Most of the homes sold in April were priced between $300,000 and $400,000. The majority of these homes are either already completed or currently under construction.
Amid concerns that housing construction material prices might rise due to Trump’s tariffs, U.S. home improvement retailer Home Depot stated on Tuesday, May 24, that despite the Trump administration imposing import tariffs on goods from various countries, the company does not currently intend to raise prices. It also reaffirmed that its full-year sales forecast for fiscal year 2025 remains unchanged.