New Home Sales Increase in April 2008

May 27 2008 - Sales of new homes rose in April for the first time in six months although the unexpected increase still left activity near the lowest level in 17 years.

The Commerce Department reported Tuesday that sales of new homes rose 3.3 percent in April to a seasonally adjusted annual rate of 526,000 units.

The government reported that home sales in March fell by 11 percent, an even bigger drop than originally reported, to an annual rate of 509,000, which was the weakest pace for sales since April 1991.

The median price of a house has increased by 1.5% to $246,100 in April from $242,500 in the same month last year, while the average price has increased 3.0% to $321,000 from $311,700.