- MUFG Union Bank in New York
US new-home sales surged the most in more than eight years while prices advanced to a record level, pointing to healthy demand alongside limited supplies across the housing market. Purchases of new, single-family homes soared 16.6% in April from a month earlier to a seasonally adjusted annual rate of 619,000, according to the Commerce Department, adding to signs of growing confidence in the economy's prospects. That was the quickest pace since January 2008. Moreover, data for February and March were revised to show 39,000 more units sold than previously reported. Economists had predicted new home sales, which make up about 10.2% of the housing market, increasing to only a 523,000 unit-rate last month. The median price of a new home rose to $321,100 in the reported month. That was up 9.7% from a year earlier and the highest level on record.
The new home sales report came in the wake of fairly positive data on home resales and residential construction. It also added to retail sales and industrial output reports in suggesting that the world's number one economy was gaining momentum after growth slowed to a 0.5% annualized rate in the first quarter.
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