Analysis

New Home Sales Jump in March

April 24, 2018

Sales of single-family homes jumped 4 percent in March to a seasonally adjusted annual rate of 694,000, according to information from HUD and the Census Bureau. Sales of new homes were 8.8 percent above the March 2017 estimate of 638,000.

House2018 Commerce estimates the number of new homes for sale at the end of March was 301,000, a supply of 5.2 months at the current sales rate.

The median sales price in March was $337,200 and the average sales price $369,000.

Sales of new homes were strongest in the West, increasing 28.3 percent last month. Sales in the South inched up 0.8 percent, while Midwest sales declined 2.4 percent. Sales in the Northeast plummeted 54.8 percent.

“The March new home sales report is consistent with our solid builder confidence readings over the past several months,” said National Association of Home Builders Chairman Randy Noel. “As consumer confidence grows and more prospective buyers enter the housing market, the sales numbers should continue to make gains.”

Sale gains in the West and South aligned with faster growing population, employment and single-family construction in the regions, said NAHB economist Micheal Neal. “With nationwide economic growth and favorable demographics, we can expect continued strengthening of the housing market across the country.”