Home-Sales Data Paint Fuzzy Picture

Updated from 1:11 p.m. EDT

New-home sales unexpectedly surged 16% in April, and inventories dropped, signaling that the key spring selling season may not be a total disaster for homebuilders.

While the data provided some optimism that the ongoing housing downturn finally may be showing signs of abating, industry watchers pointed out that the volatile monthly sales numbers can be misleading and don't necessarily signal a turnaround.

Moreover, the report came on the same day that luxury homebuilder Toll Brothers(TOL Quote) posted disappointing earnings and said the U.S. real estate market generally remains soft. ...