Strong Housing Recovery Begins with a 3.3% Increase in April Sales

New home sales showed strength in April

Housing sales showed new strength in April 2012, rising by 3.3% from March 2012 to a seasonally adjusted annual rate of 343,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development.

This number was also 9.9% above the April 2011 sales estimate of 312,000 homes.

The median sales price of new houses sold in April 2012 was $235,700 and the average sales price was $282,600. The seasonally adjusted estimate of new houses for sale at the end of April was 146,000. This represents a supply of 5.1 months at the current sales rate.

The National Association of Realtors (NAR) also released numbers stating  that existing home sales and home prices both postied 10% increases over their April 2011 levels.  This was the second consecutive monthly gain for home sales, with broad-based increases across all regions of the country.

This has led NAR officials to declare that a housing recovery is underway.  ”It is no longer just the investors who are taking advantage of high affordability conditions,” said Lawrene Yun, NAR chief economist. “A return of normal home buying for occupancy is helping home sales across all price points, and now the recovery appears to be extending to home prices.”