The U.S. housing market improved in April, according to the latest date released by the Commerce Department.
The government's estimates reveal sales of new houses jumped 3.3 percent last month, after falling more than 7 percent in March. The Commerce Department estimates the seasonally-adjusted annual rate to be approximately 343,000 - beyond analysts' expectations of 335,000, according to Reuters. Still, the figure is well below the 700,000 annual rate that was routinely seen before the economic downturn.
While new home sales have risen only marginally since the beginning of the year, the figures for 2012 are still significantly better than last year. April's estimated new home sales are a 10 percent increase from the same month in 2011.
"Today's report is representative of the kind of modest but consistent gains that we expect to see in new-home sales through the remainder of 2012," said National Association of Home Builders Chief Economist David Crowe. "As indicated by our most recent builder surveys, more consumers are taking advantage of historically low mortgage rates amidst firming economic and job market conditions in certain areas."
While construction companies continue to build new homes, analysts note there is still an overabundance of used homes on the market. The glut of foreclosures due to the recession has left many homes on the market, decreasing the need for new construction.
Building a new home offers significant benefits for the U.S. economy, according to the NAHB. For every home built, three new jobs are created for the year and approximately $90,000 is taken in tax revenue.
Construction companies looking to get to work on new homes need to ensure they have the right tools for the job. The online auction site IronPlanet offers a wide array of used construction equipment that can help contractors keep costs down.
