New single-family home sales south of the border eased off from near a nine-and-a-half-year high in April, but experts the housing recovery in the States remains intact due to a tightening U.S. labour market.
Figures released Tuesday by the U.S. Commerce Department revealed new home sales declined 11.4% to a seasonally-adjusted annual rate of 569,000 units last month. March's sales pace was revised up to 642,000 units, the highest level since October 2007.
Economists had forecast new home sales, which account for 9.8% of overall home sales, decreasing 1.5% to a pace of 610,000 units last month from the previously reported rate of 621,000 units.
New home sales increased 0.5% on a year-on-year basis. April's sales drop came after three straight months of increases.
Labour market slack, marked by a 4.4% unemployment rate, is improving employment opportunities for young Americans, helping to strengthen demand for housing.
The housing market also continues to be supported by historically low mortgage rates, with the 30-year fixed mortgage rate hovering just above 4%
But rising building material costs as well as shortages of lots and labour have left builders struggling to meet demand, keeping house prices elevated. A report last week showed home building fell for a second straight month in April, hitting its lowest level in five months.
