Sales of newly constructed houses continued to climb for the second-straight month as the number of new single-family homes sold jumped by almost 15% in April. Data from the Department of Commerce showed that about 504,000 new homes were sold last month, surpassing expectations of 430,000 units.

The figure, which grew 14.8% from last year, is said to be the highest since May 2008. Experts attributed the higher-than-expected increase to the first-time tax credit program as buyers signed purchase contracts to avail themselves of tax credits of up to $8,000 before the April 30 deadline. Financial analysts said the surge in new home sales has given the U.S. economy a cushion against the impact of Europe’s debt crisis.

“The problems in Europe have a downside risk, but I don’t think that’s going to push the U.S. economy back into recession or slow it to such an anemic pace. Conditions are much better to withstand the fallout from the problems in Europe,” PNC chief economist Stuart Hoffman said.

The number of new homes in the market, on the other hand, dropped a record 7% in April to settle at 211,000 units. It was said to be the lowest in almost 42 years. However, despite a surge in sales and a decrease in inventories, prices of newly constructed single-family homes fell to their lowest level since December 2003. According to the Commerce Department, the median sale price for a new home slipped 9.7% to $198,400 from the previous month, posting an annual decline of 9.5%.

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