The U.S. Census Bureau reported a robust increase in March New Home Sales, which climbed 8.8% month-over-month to 693K. This exceeded analysts’ expectations of 668K and surpassed the revised February figure of 637K. The increase is attributed to a surge in construction activity and a growing demand for new homes. Notably, the median sales price of new houses experienced a significant increase, rising from $400.5K in February to $430.7K in March. This reflects a strong demand for new homes and the willingness of buyers to pay higher prices. The average sales price also saw an uptick, reaching $524.8K compared to $485.0K in January. These figures indicate a positive trend in the housing market, supported by low interest rates and a growing economy. At the end of March, the seasonally adjusted estimate of new houses for sale stood at 477K, representing a supply of 8.3 months at the current sales rate. This is slightly lower than the 8.4-month supply at the end of January, suggesting a gradual decrease in inventory levels. Overall, the March New Home Sales data paints a picture of a vibrant housing market, driven by rising prices and strong demand for new homes.
March New Home Sales Surpass Expectations, Driven by Rising Median Prices
