Sales of newly constructed homes up in April

Sales of newly constructed homes were better than expected in April, increasing nearly 15 percent nationally over a robust March, and leaving a dearth of inventory not seen since 1968.

In the south, a region that includes Florida and 16 other states, new home sales increased nearly 11 percent over March and 38 percent compared to April 2009, according to a monthly Commerce department report released Wednesday.

Nationally, the seasonally adjusted annual sales pace hit 504,000 in April. In the South, it was 278,000.

April was the second straight month of increasing sales after a record low February. A nearly 30 percent increase in sales in March was the largest jump in 47 years.

"We've had more business in the last two months than we had in the past six months," said Brett Handler, president of Palm Beach Gardens-based Dreamstar Custom Homes, which also does renovation and remodeling work. "We have a bunch of prospects. It's out of the blue. People are back in the market."

The April 30 expiration of the home buyer tax credit is responsible for part of the increase in sales, but some economists said low interest rates and a generally positive feeling about the economy also helped.

Not all Floridians, however, are overwhelmed by the economic love. While the Conference Board, based in New York, announced Tuesday that its Consumer Confidence Index rose for the third straight month, Florida's index fell seven points, according to the University of Florida Bureau of Economic and Business Research.

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Sales of newly constructed homes up in April - Palm Beach Post - May 26, 2010