Purchases of new U.S. homes unexpectedly increased in March to an eight-month high, indicating housing demand remained strong at the start of the spring buying season, Commerce Department data showed Tuesday.
- Single-family home sales increased 5.8 percent to a 621,000 annualized pace (median forecast called for a 584,000 rate)
- The median sale price of a new house rose 1.2 percent from March 2016 to $315,100
- Supply of homes shrank to 5.2 months from 5.4 months; there were 268,000 new houses on the market at the end of March
Steady job growth and improving wages are continuing to drive demand, building on last year’s new-home sales that were the strongest since 2007. While mortgage costs remain above pre-election levels, they’re becoming less of a curb on the market, with the average 30-year fixed rate falling last week to the lowest since November. Still, lean inventories and rising prices may restrain any gains.
- Rise in demand was led by a 16.7 percent gain in the West, which had the fastest sales pace since 2007; the South and Northeast also saw gains, while purchases slowed in Midwest
- The February reading was revised to a 587,000 pace from a previously estimated 592,000
- Commerce Department said there was 90 percent confidence that the change in sales last month ranged from a 9.7 percent drop to a 21.3 percent increase, underscoring the volatility of the data
- New-home sales account for about 10 percent of the residential market and are tabulated when contracts are signed; existing-home sales, which rose 4.4 percent last month, are based on contract closings
Copyright Bloomberg 2017
Team Leader, The Tonnesen Team
Berkshire Hathaway HomeServices, Nevada
3185 St Rose Pkwy #100 Henderson, NV 89052
With over 30 years of experience helping families call Las Vegas "home!"
Related Blog Posts
A lackluster credit score could bring up your interest rate and set the stage for years of higher payments. But if you work on improving your score, you'll end up paying less for your home loan. Many of us don't pay attention to our credit scores until the time comes to borrow money. But what you may not kno...
Typically winter months have a higher number of housing bargains due to stressful weather conditions and lack of competition, with February coming out on top as the month with the most housing deals. In fact, a recent study by Attom Data Solutions looked at the sales of 50 million homes from 2000 through 2016 and...
Agents across the US are getting calls from would-be clients who realize buying is suddenly getting cheaper Like an avalanche growing larger as it tumbles down a mountain, real estate agents are seeing swelling demand from buyers as mortgage interest ratesplummet and — contrary to what some observers previo...