• New home sales jumped 5.8 percent month-over-month to 621,000 units (SAAR) in March, according to the Census Bureau.
• The number of new homes for sale increased by 3,000 units, about 1.1 percent, to 268,000 units (SAAR), the most new homes on the market since July 2009.
• The median seasonally adjusted price of new homes sold in March jumped 7.2 percent from February to $312,800, reversing the drop reported in February.

New home sales beat expectations for the third consecutive month, rising 5.8 percent from February to 621,000 units at a seasonally adjusted annual rate (SAAR), according to the U.S. Census Bureau. It was the best month for new home sales since last July, and July 2016 aside, the best month since January 2008. New home sales have now increased on a monthly basis in five of the past seven months and are up 15.6 percent from a year ago.

February new home sales were revised downward by 5,000 units, but January and December new home sales were revised upward by a combined 48,000 units. The combination of higher January sales and lower February sales reduced February’s month-over-month increase in sales from an initially reported 6.1 percent to 0.3 percent.

For March, there was a particularly strong increase in the number of new homes sold prior to the start of construction. Homes sold before construction accounted for 32 percent of new homes sold in March, compared to 27 percent in February.

Regionally, new home sales increased over the month in all Census regions except for the Midwest, where they fell 4.6 percent from February. The West – which saw an increase of 25,000 units (16.7 percent) – accounted for nearly three-quarters of the nationwide jump in new home sales. Over the year, new home sales are up 32.6 percent in the West, 23.5 percent in the Midwest, 21.9 percent in the Northeast, and 5.9 percent in the South. Over the year, about half of the nationwide increase in new homes sold has been due to strength in the West.

The number of new homes on the market increased 1.1 percent from February to 268,000 units (SAAR), its highest level since July 2009 (similar to last month) but still low by historic standards. The number of new homes on the market is up 9.8 percent over the year, in line with the pace of annual growth observed over the past three months. Permitted but not started new homes accounted for 21 percent of new homes for sale on the market in March, up from 19 percent in February, up from 16 percent a year ago, and at their highest share since the data begin in 1973. The high share of unbuilt homes already for sale is, perhaps, a signal of strength for new home sales in the months ahead.

The median seasonally adjusted price of new homes sold in March jumped 7.2 percent from February to $312,800, the first month-over-month gain in median sale price thus far in 2017. It essentially erased the 7.1 percent drop reported in February. The median price of new homes sold in March was 1.3 percent higher than a year ago.

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