New Home Sales for April were just released. New Home Sales were 343k on a Seasonally Adjusted Annual Rate. Year to Date, New Home Sales are up 12% versus the same period last year and are now up 22.5% versus the bottom reached in October of 2010. New Home Sales have put in a bottom, and I would expect New Home Sales to continue increasing at double digit rates for the foreseeable future.
New Home Inventories are at all time lows and are almost 60% below the average of the past 20 years of 341k units. As the Housing Recovery gains steam, the low levels of new Home Inventories is going to put a floor under Home Construction. There is always a certain percentage of buyers who want brand new and New Home Sales which have been 56% below the average of the past 20 years have finally started a strong recovery, albeit from historically low levels.