Naples Home Sales JUMP 16.2% in April, 2007

New home sales jump 16.2% in April, to an annualized level of 981k units, the highest monthly increase in over 14years. The largest increase in April new home sales were on homes not yet started, and those under construction. Completed home sales were virtually unchanged from last month’s levels.

The median price of homes in April fell 10.9% from this time a year ago, to $229k. More than 66% of April sales were homes priced under $300k. The big jump in the number of low priced houses (under $150,000) lessens the impact of the headline increase in home sales.

This morning Toll Brothers Inc., the largest luxury home builder, said 2Q profits tumbled 79% on declining property values and cancellations.

Strength in home sales was primarily in the South, rising 28%, and the west, which was up slightly. The northeast, however, was just about unchanged and sales in the Midwest fell by 5k in April.

The months’ supply remains elevated at 6.5, down from a high of 8.1 last month.

This is a surprisingly optimistic report for housing this morning, fuel for many bulls to call a turnaround in the sector. However, be wary of reading to much into this one month report. Declining prices and heavy inventory remain the dominate themes of the housing market. The housing recovery will not be a 2007 event.

Back to home page

Email Micky Enright for more information about Naples, FL real estate