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
Is there really a shadow inventory in the Las Vegas real estate market? If so, when will these properties be released to the market? What will happen to prices when/if it happens? As real estate agents, these are questions we are asked almost every day, and a number of buyers have stated they are waiting until prices...
Refinancing can be a very effective way to save money -- just be sure to go about the process in an informed manner, making sound choices along the way. These seven tips can help. Interest rates are starting to inch up, with many expecting the Fed to raise rates a little more later this month. A recent strong...
March marked the 18th consecutive month of annual supply declines, according to Redfin.U.S. home prices rose 7.5% last month to a median sale price of $273,000 — a year-over-year increase of 8.9%. Home sales, however, decreased by 13% compared with the same month last year.2017 is shaping up to be the fastest hou...
October 2017 Single Family Residential (SFR) closed sales were up 1.6% from September and up 13.2% compared to October 2016. Year to date 2017 closed sales are still up 9.8% over 2016. The median closed sales price of a SFR dipped to $263,000 while the average closed sales price of an SFR ju...