New home sales bounced by roughly 3% in April to an annualized rate of 526,000 units, the first increase since October 2007, analysts from RBS Greenwich Capital said.

Even though April's rise is welcome after months of steady dips, the advance was because of the revision in March's initial projection of 526,000 units , which was revised down to 509,000 units. This, according RBSGC analysts, does not cause confidence that housing demand is rebounding.

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