US new home sales register sharp slump in April

New home sales in the US fell by far more than economists had anticipated in April.

In seasonally adjusted terms, according to the Department of Commerce, new single-family home sales dropped at a month-on-month pace of 16.6% to reach an annualised pace of 591,000.

Economists had penciled-in a dip from 763,000 (Revised: 709,000) to 750,000.

Versus a year earlier, new single-family home sales were 26.9% lower on the month.

The inventory of homes available for sale meanwhile rose to the equivalent of nine months' worth of sales, up from 6.9.

Average sale prices for a home however jumped from $522,500 to $570,300.