New vehicle retail sales are expected to decline in April, according to a forecast developed by J.D. Power and LMC Automotive.

Retail sales will reach approximately 1,041,600 units, which represents a 5.3% decrease from the same time last year, according to forecasts.

"From an overall volume perspective, the industry continues to show signs of softness with April, representing the 10^th straight month of year-over-year retail sales declines," said Thomas King, SVP of the Data and Analytics division at J.D. power. "Yet we continue to see strength in other key industry health metrics, with a large increase in average transaction prices and lower manufacturer incentives."

New-vehicle prices for April are on pace to reach the highest point they've ever reached: $33,695, representing a 4% increase from a year ago.

Even with these higher prices, incentive spend is expected to see a year-over-year decline.  The average incentive spend in April is expected to be $3,408, $300 less year-over-year, according to J.D. Power.

Demand for vehicles costing $40,000 and higher in the new-vehicle front is up 7%. At the same time, demand for vehicles costing less than $20,000 in the new-vehicle market is down 25% year-over-year.

Many of the buyers who would have purchased a vehicle under $20,000 in the new-vehicle market appear to be looking at the used-vehicle market.