US New Home Sales Rise 10.9% to Highest Since 2022

U.S. new single-family home sales rose unexpectedly by 10.9% in April to an annual rate of 743,000 units, marking the highest sales level since February 2022. This increase was driven largely by builders lowering prices and offering incentives such as mortgage rate buydowns to attract buyers amid economic uncertainty, rising mortgage rates, and elevated building costs. Despite the April surge, industry experts caution this may be an anomaly, noting that builder sentiment declined in May and year-to-date sales are down slightly due to ongoing challenges including policy uncertainty and rising construction costs. Inventory levels are stabilizing near half a million new homes for sale, and the resale market's rising inventory may pressure new home prices and sales in the coming months. In contrast, UK new home registrations increased significantly by 36% in the first quarter of 2025 compared to the same period last year, reflecting growing builder confidence supported by government investment in infrastructure and planning reform. Meanwhile, in local U.S. markets such as Carson City, existing single-family home sales increased modestly in April with stable pricing, signaling balanced market conditions without overheating.