Get free access to our world class MLS search tools, save your favorite listings, create saved searches & much more!

New home sales unexpectedly spike to 8-month high

Posted by Mastura Zaini-Roberts on Tuesday, April 25th, 2017 at 1:33pm.

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.



Key Points

  • 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

Big Picture

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.

Other Details

  • 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

Mastura Roberts
(702) 919-5400
offers@greatlasvegashomes.com

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

5 TIPS TO CHOOSING THE RIGHT HOME INSURANCE

There are so many home insurance companies out there that choosing the right one can be a challenge for most people. That’s because most of them offer almost the same services, but differ on details such as prices and the level of coverage. To help you out, here are 5 tips to choosing the right home insuranc...

Please Don't Reject My VA Buyer!

It seems our poor Veterans are getting hit from all sides these days. From long waits to receive urgent medical care, to decreased retirement benefits, to cutbacks on funding for new recruits, Veterans are among the least appreciated members of our society. And this appalling neglect seems to extend to home buying as...

Las Vegas Among Top 8 Cities for People Who Hate to Pay Taxes!

April 15th is almost upon us, and if you are like most people, you are sitting hunched over your desk trying to find just one more deduction to claim before dropping your tax return in the mail. So if tax time has got you down, maybe you should consider moving and buying a home in Las Vegas. The following are excerpts...

Consumer confidence in housing hits all-time high

Consumer confidence in housing is at an all-time high, with millennials posting strong increases in confidence, according to new data from Fannie Mae. The Fannie Mae Home Purchase Sentiment Index (HSPI) spiked by 5.6 percentage points last month to 88.3, the highest it’s been since Fannie started keeping...

11 reasons for sale by owner is a terrible idea

Agents can save sellers time, money, liability and hassle Key Takeaways: FSBOs are more costly than homeowners realize -- including lower sales prices and hidden fees. Selling a home is a complicated transaction -- sellers and buyers alike can get burned with FSBOs. Time costs money -- a F...

Leave a Comment

Have a Question?

Contact Us

Follow Us