The sales of new single‐family houses in March were at a seasonally adjusted annual rate of 693,000, according to the U.S. Census Bureau and the Department of Housing and Urban Development (HUD).
The March estimate is 8.8% above the revised February rate of 637,000 and is 8.3% above the March 2023 estimate of 640,000.
“The new-home market maintained momentum in the spring selling season, beating expectations in March,” says Nik Scoolis, manager, housing economics, at Zonda. “Despite affordability headwinds, the widespread lack of resale inventory continues to push buyers into the new-home market. With mortgage rates expected to be higher for longer, incentives will remain crucial for builders to get sales across the finish line.”
The median sales price of new houses sold in March was $430,700, while the average sales price was $524,800.
“Home buyers went for newly built houses in a big way in March, as they drove a surge in new-home purchases. Several factors were behind the increase in sales of new homes. There’s a shortage of existing homes available for resale,” says Holden Lewis, home expert at NerdWallet.
“Builders completed construction on almost 350,000 new homes in the first three months of 2024, and they were eager to sell them. And some builders are offering incentives, such as rate buydowns, to entice buyers. All of these factors—the shortage of existing homes, completions of new homes, and incentives—are beginning to fade,” Holden adds.
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.
