US new home sales rise for second consecutive month

| May 24, 2011 | 0 Comments
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The Commerce Department has today revealed sales of new homes in the US rose for a second consecutive month in April, after diving to a record low in February.

According to the Commerce Department, new single-family home sales grew 7.3% on the month to an annual rate of 323,000 units, better than analysts had forecast.

However, sales are still 23% lower compared with April 2010.

Last week, the National Association of Realtors (NAR) revealed sales of previously owned homes in the US unexpectedly fell last month.

The industry body said sales fell by 0.8% in April to an annual rate of 5.05 million units.

Also last week, the Commerce Department said US housing starts slumped in April – much worse than forecast.

Housing starts dived 10.6% in the month to a seasonally adjusted annual rate of 523,000 units, analysts had expected an annual rate of 563,000.

Furthermore, applications for building permits, a barometer of future home construction, also fell, by 4%, to annual rate of 551,000 units.

Demand for houses in the US continues to be weak with potential buyers struggling to obtain mortgages.

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