New home sales fell 5.9% on a monthly basis in April to 863,000 units, the U.S. Census Bureau and the Department of Housing and Urban Development reported. Year over year, however, sales were up 48.3%.
Sales were down in all regions except for the West, where they rose 7.9% to 164,000 homes. The South saw sales fall 8.2% to 545,000, while they were down 8.3% to 110,000 in the Midwest and down 13.7% in the Northeast.
At the end of April, there were 316,000 new homes for sale, representing a 4.4-month supply of homes.
The median sales price of new homes sold in April was $372,400, up from $334,200 in March and $310,100 a year ago.
National Association of Home Builders Chief Economist Robert Dietz said the rising cost of homes is driving down the pace of sales as many would-be homebuyers find themselves priced out.
“After a period of builders holding back price increases, new home prices were 20% higher year-over-year per the April Census data,” Dietz said in a press release. “Higher prices have priced out buyers, particularly at the lower end of the market. A year ago, 45% of new home sales were priced below $300,000. In April 2021, only 27% of new home sales were priced below $300,000.”