Sales of new single-family homes in the U.S. rose more than forecast in April and inventories of homes on the market recorded its highest level in three and a half years, giving signs that a recovery in the housing market that was being irregular now has strengthened.
The Commerce Department said sales rose 6.4% to a seasonally adjusted annual rate of 433,000 units, ending two straight months of declines.
The March rate was revised upwards to 407,000 units from the previously reported 384,000.
The government made revisions to the model used to adjust the data for seasonal fluctuations, which only affected the monthly data.
Economists polled by Reuters had forecast sales at a rate of 425,000 units last month. Compared to April last year, sales fell 4.2%.
An increase in mortgage rates last year, and a rise in house prices has been greater than wage growth are weighing on the housing sector.
Home sales are also pressured by a shortage of properties, but there are signs of an imminent recovery.
Sales of existing homes rose in April and the inventory of homes was the highest in nearly two years, a report showed Thursday.
According to Freddie Mac, mortgage rates 30 year fixed fell to an average of 4.14% this week, near a level in seven months, from an average of 4.20% last week, which should improve access to housing.
Last month, sales of new homes rose sharply in the central region of the United States and reached its highest level since November 2007.
Sales also rose in the south, but remained stable in the west. In the northeast, meanwhile, recorded their biggest decline since October 2012.
Inventories of new homes on the market increased 0.5% to 192,000 units, the highest level since November 2010.
Although the stock of new homes on the market have risen from a record low reached in July 2012, remain at less than half its pre-recession level.
At the April sales pace, it would take 5.3 months to sell all homes on the market, down from 5.6 months in March.
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With the improvement of inventories, the average price of a new home fell 1.3% last year, to $ 275.800.