New home sales were steady in April at a 352,000 annual pace, adding to the growing evidence that the long slide in the housing market is over. However, expect permits, starts and sales to stay near the current level for 3-4 months before sustained improvement begins. The new home sales environment is still overloaded with negatives: recession level buyer confidence, tightening credit approval standards for both homebuyers and homebuilders, intensifying competition with distress sales of existing homes and an expected drop in home affordability in the next few months.

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