New single-family home sales rose for the fifth month in a row in April, climbing 4.1% month over month and 11.8% year over year to an annual rate of 683,000 homes, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development reported.   

Meanwhile, the median price of a new home sold during the month fell to $420,800. That’s down from $455,800 in March and $458,200 in April 2022, representing the largest annual decline since April 2020, according to First American Deputy Chief Economist Odeta Kushi. She also noted that builders are using incentives like price reductions to entice buyers.

“Big picture — there are interested buyers out there, but a limited inventory of homes for sale,” Kushi said. “With existing homeowners not selling, buyers may turn to the new-home market, and builders are in a unique position to do what’s necessary to move inventory and bolster sales.” 

By region, the pace of new-home sales was mixed, with monthly declines of 58.6% and 9.1% in the Northeast and West, respectively, and increases of 11.8% and 17.8% in the Midwest and South, respectively.      

Months’ supply of homes for sale fell 3.8% to 7.6 months from 7.9 months in March; on a year-over-year basis, inventory was down 10.6% from an 8.5-month supply in April 2022.