Demand for new homes rose more than forecast in April, indicating residential real estate may contribute to economic growth for the first time in seven years.
Purchases rose to a 343,000 annual rate, up 3.3 percent from a revised 332,000 in March, the Commerce Department reported Wednesday in Washington. The median forecast in a Bloomberg News survey of 72 economists was 335,000. Data on Tuesday showed April sales of previously owned homes rose in every region.
“It’s very clear now that the housing market has turned a corner,” said Richard DeKaser, deputy chief economist at Parthenon Group in Boston, who projected sales would increase to a 339,000 pace. “The only question is how strong the rebound is going to be. It bodes well for the broader economy.”News Tribune news services