In a stark contrast to existing #home sales, which declined this March, sales of newly built homes saw a notable increase. Despite expectations for a spring sales uptick, the sharp rise caught many off guard. Economists from Dow Jones and The Wall Street Journal had forecasted the March sales pace to be nearly 30,000 homes lower than the actual seasonally adjusted annual rate (SAAR).

➡️ March witnessed 693,000 new single-family home sales nationwide, an 8.8% increase from February’s revised rate of 637,000, and 8.3% higher than last year’s March estimate, according to the U.S. Census Bureau.

➡️ At the end of March, the seasonally-adjusted inventory of new homes stood at 477,000, equating to an 8.3-month supply at the current sales pace, a decrease from 8.8 months in February but slightly up from last March.

With builders set to exceed last year’s construction of single-family units, supply is increasing. The housing market has relaxed somewhat from last year, yet #demographics and a robust labor market continue to bolster #housing demand.

Looking forward, #mortgage rates have climbed significantly in April and are expected to remain high. Anticipate #builders to offer incentives, such as rate buydowns, to attract buyers. #newconstruction

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