Monthly, Yearly Jump In New Home Sales In March

Sales of newly built, single-family homes in March jumped 8.8% month-over-month, reaching a seasonally adjusted annual rate of 693,000 units compared to February's revised 637,000 units, according to data released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development (HUD).

The pace of new home sales in March was up 8.3% from a year earlier. The median sales price of new houses sold in March was $430,700, while the average sales price was $524,800.

"New home sales continue to be a bright spot in the housing industry," CoreLogic Chief Economist Dr. Selma Hepp said. ''Homebuilder confidence and buying incentives are helping to counterbalance high values and interest rates. However, compared to years in the past, new home sales still aren't performing as well as necessary to help reduce the high demand for new homes in the near term."

The jump in new home sales coincides with roughly a quarter of builders cutting prices for new builds in March. The seasonally‐adjusted estimate of new houses for sale at the end of March was 477,000, which represents a supply of 8.3 months at the current sales rate.