• There were 683,000 new home sales nationwide in March (SAAR), up 9.6% from February and down 3.4% from March 2022, according to the U.S. Census Bureau.
• The median sales price of new houses sold in March was $449,800.
• The seasonally-adjusted estimate of new houses for sale at the end of March was 432,000, a supply of 7.6 months at the current sales rate.

What happened: New home sales beat expectations in March as more new construction homes entered the market and buyers started their spring home shopping leading to increased sales, an increase from winter that is on par with historic trends. 

Why it matters: With low existing home inventory, competition is heating up the housing market. But more new construction home sales shows that the flow of new homes onto the market is coming at a much needed time – and buyers are responding.

What Zillow Senior Economist Nicole Bachaud thinks: While existing home sales are slowing this spring in the wake of high interest rates keeping sellers locked in, new construction homes are picking up speed on a monthly basis. The backlog of new construction homes from the building boom across 2021 is working its way to the market, offering fresh listings for buyers who are facing more competition on fewer homes. While still lower than new home sales a year ago, this bump in new inventory is important for keeping the market on a healthy and sustainable trajectory, especially during this spring home shopping season. And although overall home construction activity has slowed in recent months with high rates and slowing demand, slight upticks in single-family home construction could indicate that we will continue to see this flow of new construction homes making its way to the market when it’s needed the most.