There were 693,000 (SAAR) new single family-home sales nationwide in March up 8.8% from the revised February rate of 637,000 and 8.3% above the March 2023 estimate, according to the U.S. Census Bureau.
The median price of new houses sold was $430,700 down 1.9% from a year ago.
The seasonally-adjusted estimate of new houses for sale at the end of March was 477,000, a supply of 8.3 months at the current sales rate. This is down from 8.8 months in February but up slightly from last March.
What happened: After declining last month, newly built home sales increased more than expected in March. Demographics coupled with a strong labor market continue to support housing demand.
Why it matters: In sharp contrast with existing home sales, which fell in March, sales of newly built homes increased sharply this month. Looser financial conditions due in part to new stock market highs and a strong labor market helped support demand. That combined with the increase in newly built home inventory at the start of the year helped push new home sales higher.
Although higher mortgage rates have loosened the housing market somewhat when compared to a year ago, new home sales are increasing and months’ supply is falling again more than expected this home shopping season. This is in part because builders continue to offer incentives – like rate buydowns – to make the math work for prospective buyers.