New U.S. single-family home sales tumbled from near a 9-1/2-year high in April, but the housing recovery likely remains intact amid a tightening labor market.
The Commerce Department said on Tuesday new home sales declined 11.4 percent to a seasonally adjusted annual rate of 569,00 units last month. March’s sales pace was revised up to 642,000 units, which was the highest level since October 2007.
Economists polled by Reuters had forecast new home sales, which account for 9.8 percent of overall home sales, decreasing 1.5 percent to a pace of 610,000 units last month from the previously reported rate of 621,000 units.
New home sales, which are derived from building permits, are volatile on a month-to-month basis. Sales increased 0.5 percent on a year-on-year basis last month. April’s sales drop came after three straight months of increases.
Shrinking labor market slack, marked by a 4.4 percent unemployment rate, is improving