APRIL SHOWED A RISE IN NEW HOME SALES/MORTGAGE RATES STILL LOW

Sales of new homes rose in April to the second highest level since the summer of 2008 while the median price for a new home hit a record high, further signs that the housing market is recovering, according to the latest figures from the U.S. Commerce Department

The U.S. Commerce Department reported last week that the median price of a new home hit $271,600, up nearly 13 percent from $236,400 a year ago. An estimated 156,000 new homes were available for sale at the end of April, representing a supply of 4.1 months at the current sales pace.

Sales of new single-family homes rose 2.3 percent in April to a seasonally adjusted annual rate of 454,000 from the revised March rate of 444,000 and they were 29 percent higher than the April 2012 estimate of 352,000, according to the figures.

Steady job creation and near-record-low mortgage rates are spurring more Americans to buy homes. With the April increase, sales are now 29 percent higher than a year ago, but sales are still below the 700,000 level considered healthy by economists.

Greater demand, along with a tight supply of available homes for sale, is also boosting prices in most markets and encouraging more construction. Applications for permits to build homes rose in April to the highest level in nearly five years. While construction of new homes and apartments slipped a bit in April.

Though new homes represent only a fraction of the housing market, they have a sizable impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue.

Robin Taylor, Realtor

Century 21 Alliance

610-574-0115