• April new home sales fell 6.9% from March to a seasonally adjusted annual rate of 673,000, according to the U.S. Census Bureau. The March figures were revised upward by 4.5%. The April figure is 7% above April 2018.
• The median sales price of new houses sold in April 2019 was $342,200.
• Inventory dropped 0.9% from March to 332,000 and rose 11% from last April.

While the headline figures are disappointing, this decline in new home sales does not reflect the overall health of the housing market. The strong reading from March greatly exceeded expectations and was revised upward today; without that revision, April’s month-over-month decline would be just 2.7%–and the underlying trend in sales remains strong. Builders are finding ways to deliver homes despite expensive land and labor prices, a boon to buyers thirsty for more supply. Strong builder confidence was borne out by last week’s encouraging home starts figures, which suggest that the supply of new homes is poised for growth. This strength, combined with enduring low mortgage rates and a historically strong job market suggest that today’s reading is just a slight step back in the continued recovery of new home sales.