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Sales of new homes down 1.5% in April

By Associated Press
Published: May 23, 2018, 5:03pm
2 Photos
FILE- This May 4, 2018, file photo shows a house is under construction in Roseville, Calif. On Wednesday, May 23, the Commerce Department reports on sales of new homes in April.
FILE- This May 4, 2018, file photo shows a house is under construction in Roseville, Calif. On Wednesday, May 23, the Commerce Department reports on sales of new homes in April. (AP Photo/Rich Pedroncelli, File) Photo Gallery

WASHINGTON — Sales of new U.S. homes fell 1.5 percent in April, held down by a shortage of affordable houses in the most desirable areas and sharp pullback in purchases in the Western United States.

The Commerce Department said Wednesday that new homes sold last month at a seasonally adjusted annual rate of 662,000. Despite the setback, new-home sales so far this year are 8.4 percent higher than in 2017.

A solid job market and a shortage of existing homes for sale have led more people into the new home market, even though they are generally more expensive than existing homes. Sales last month occurred disproportionately at the higher end, where profit margins are often greater for builders.

In April, new-home sales tumbled 7.9 percent in the West and were essentially unchanged in the Midwest and South. Sales improved 11.1 percent in the Northeast. The new-home sales figures are often volatile on a monthly basis and are often revised.

The median sales price of a new home rose 0.4 percent from a year ago, to $312,400.

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