Why have we just seen the highest new home sales print in years?

New sales report for home

From Census: The sale of new single -family homes in April 2025 was a seasonal annual rate of 743,000, according to estimates that were jointly released today by the US Census Bureau and the Department of Housing and Urban Development. This is 10.9 percent (± 13.5 percent)* above the March 2025 rate of 670,000, and is 3.3 percent (± 14.7 percent)* above April 2024 rate of 719,000.

Here is a look at the regional demolition of the data. You can see where growth came from and these figures will be revised lower, as in the previous months. With new sales and census data in general you must follow the revision trend if it is positive or negative.

Here are some general graphs of the entire report. The monthly delivery data was purchased in this report. However, as shown below, the total stock data for builders is currently higher than in recent history, although it fell slightly in this report. If you look at the new sales data for the home itself, we have really been arranged in recent years. Nevertheless, today’s report has been highest since 2022.

Why do Builder shares perform, in view of this report, poorly and why does the Homebuilder survey show that shows such negative results, which is only four points away from the lows during the COVID-19 Pandemie? Remember that this survey focuses more on smaller builders. The stock levels are rising and unlike larger listed companies, smaller builders often miss strong balances. That is why it is not surprising that the reliability data has been purchased, especially in view of the increased mortgage interest and discussions about rates.

Builder Buy Application Data still positive

Many people may not realize that the new sector for selling home has its own purchase request data, which are released monthly by the Mortgage banking association (MBA). Last week, the report showed a growth of 5.3% year after year and a growth from 2% month to month.

Based on the application data, the MBA was the new home sale 724,000, so the 743,000 figure, which I think will be revised, is not that surprising. New housing sales have remained relatively stagnant for years and remain within a small reach. If we start to see an outbreak in the coming months, we may be able to exceed more than 800,000 sales. However, I have not seen that happen with the rates above 7%; It is usually expensive for builders to pay rates.

Conclusion

The head may seem a bit confusing. Last week, I appeared on CNBCWhere I discussed builders and shared insights from fellow analysts. There are promising signs of the demand for housing; However, this question is closely linked to the need for lower mortgage interest. My explanation and this article about the most recent report from the home start can offer a more precise context.