Sales of new single‐family houses spiked in March, according to estimates released by the U.S. Census Bureau and the Department of Housing and Urban Development.
The seasonally adjusted annual rate came in at 683,000, or 9.6% above the revised February rate of 623,000 but 3.4% below the March 2022 estimate of 707,000.
“The new-home market continued to show strength as we progress through selling season,” says Nikolas Scoolis, manager, housing economics, for Zonda. “The 683,000 homes sold in March was the highest seasonally adjusted figure since the same month last year. In addition, the most recent release was the fourth consecutive month-over-month gain, driven by some rate relief as well as builders continuing to take advantage of a general lack of resale supply.”
The median sales price of new homes sold in March was $449,800, while the average sales price was $562,400.
The seasonally adjusted estimate of new houses for sale was 432,000 at the end of March, representing a 7.6-month supply at the current sales rate.
“March was the strongest month for new-home sales in a year, for a few reasons,” says Holden Lewis, home and mortgage expert at NerdWallet. “First, new homes are being bought by people who might normally shop only for existing homes—but there weren’t enough existing homes on the market to choose from. Second, developers have set prices and offered incentives to get their homes sold. On top of that, mortgage rates haven’t been as volatile as they were last spring, giving buyers confidence that they’ll be able to complete their purchases.”
