Home Sales, Prices Rise Nationwide

Defying predictions of a slowdown, nationwide home sales and prices surged in April as record-low mortgage rates fueled a home-buying boom and provided a much-needed boost to a sagging economy.

The Commerce Department reported Tuesday that new-home sales in April rose 1.7% from March to a seasonally adjusted annual rate of 1.03 million, the highest level since December and above economists’ expectations. The average sales price increased to $235,000 in April from $231,100 the previous month.

Existing-home sales also posted a strong performance in April, with sales rising 5.6% from March to a seasonally adjusted annual rate of 5.84 million units -- the fifth-highest ever reported, according to the National Assn. of Realtors.

NAR President Cathy Whatle noted that mortgage rates have continued to fall since April to the lowest levels reported in more than 30 years.

“This will continue to stimulate home sales and related industries in addition to refinance activity, which will help to boost the economy in the second half of the year,” Whatle said.

The Conference Board said Tuesday that its index tracking consumer confidence in the economy rose to 83.8 in May from 81 in April, the highest level since November’s reading of 84.9. Analysts expected a reading of 84.

The national median existing-home price in April rose 6.8% from the same month last year to $163,400. The median is the price where half the homes sold for more and half sold for less.

On a regional basis, the West posted some of the strongest gains for home sales. Existing-home sales in April jumped 9.6% from the previous month to an annual rate of 1.6 million units. The median home price in the West was $233,200, up 6.1% from the same month last year.

New-home sales in the West rose 4.3% in April to an annual rate of 267,000.

In California, April sales of all homes -- including condominiums -- dipped slightly to 53,400 from 54,169 a year earlier, according to DataQuick Information Systems. The statewide median sales price, however, jumped 13.8% to $269,000.

Low mortgage rates continued to draw home buyers into the market despite sharply rising prices in some markets, including Southern California. Last week, the average rate on a conventional 30-year, fixed-rate mortgage fell to a record low of 5.34%, according to mortgage company Freddie Mac. In April, the monthly average was 5.81%.

Associated Press was used in compiling this report