Sales of new single-family homes dipped 4.7% between March and April, sliding from to an annual rate of 665,000 to 634,000, according to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.       

Sales were down 7.7% compared to 687,000 a year earlier.   

The median price of a new home sold during the month fell to $433,500 from $439,500 in March. Year over year, the median price was up from $417,200 in April 2023.     

“The new-home market had been a relative bright spot in housing, but a variety of factors have converged to sap its momentum,” First American Deputy Chief Economist Odeta Kushi said in a press release. “The spring surge in mortgage rates has dampened demand, even amid falling new-home prices and an uptick in new-home inventory, which reached its highest point since 2008.” 

By region, the pace of new-home sales was up 10% month over month in the Midwest and down 20.9% in the Northeast, 7.3% in the West and 4.8% in the South.  

Months’ supply of new homes for sale rose 7.1% to 9.1 months on a month-over-month basis and 21.3% on a year-over-year basis. 

“New-home sales are vitally important considering the continued shortage of homes in most markets and will continue to gradually increase with solid economic background and availability constraints in the existing market,” CoreLogic Chief Economist Selma Hepp said. “Also, the growth in new homes continues to be abetted by builders’ ability to offset falling housing affordability through price discounts, mortgage-rate buy-downs and similar incentives, which will keep the overall share of new-home sales elevated.”