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Why have new home sales shrugged off COVID?

An incentive to sell to support cash-flow, relatively affluent buyers and a streamlined selling process help explain why new home sales increased in April even as the unemployment rate hit a record high. Without those benefits, existing home sales will fall further. Indeed, the sharp fall in the pending home sales index in April implies sales will drop to around 3m annualised in May, down 50% from their level in February.

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