Experts point out new home sales still high compared to 2016
By Kelsey Ramírez | HousingWire
New home sales dropped in April, and now experts are saying they have a long way to go before hitting the historic average.
Sales of new single-family homes dropped 11.9% in April from last month, but remained up 0.5% from last year, according to the release from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.
The current level makes up 88.3% of the 50-year average, according to a report from Trulia. However, new home sales are unable to keep up with the rate of total sales.
“How many new home sales do we need for the market to look normal?” Trulia Chief Economist Ralph McLaughlin asked. “If we compare the share of new home sales to total sales, that share needs to more than double.”
