Industry News

 

New Home Sales in March Continue Upward Trend

04/25/2017

Sales of newly built, single-family homes rose for the third straight month, increasing 5.8 percent in March to a seasonally adjusted annual rate of 621,000 units, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.

�This month�s increase in new home sales is aligned with solid builder confidence and shows that the spring home buying season is off to a strong start,� said Granger MacDonald, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Kerrville, Texas. �However, builders are concerned that ongoing increases in building material costs will hurt housing affordability, especially given today�s proposal by the Department of Commerce to impose a hefty tariff on Canadian lumber.�

�The March sales numbers are the second highest on record since the Great Recession, which is especially encouraging considering the poor weather conditions throughout many parts of the country,� said NAHB Chief Economist Robert Dietz. �With tight existing home inventory, rising household formations and continued job creation, we can expect further growth in new home sales moving forward.�

The inventory of new home sales for sale was 268,000 in March, which is a 5.2-month supply at the current sales pace. The median sales price of new houses sold was $315,100.

Regionally, new home sales increased 25.8 percent in the Northeast, 16.7 percent in the West and 1.6 percent in the South. Sales fell 4.5 percent in the Midwest.

SOURCE: NAHB.org