New Home Sales Jump 11%
According to the Census Bureau, a new home sales jump in March greatly beat market analyst expectations by rising 11.1% from the previous month. But even better news was the new homes inventory: the lowest since 1967.
Analysts expected existing home sales to post a 3.7% gain.
These results from the Census survey equate to nearly 300,000 new home sales annualized, still down 84,000 from last year.
New sales of single-family homes fell nearly 17% in February from a month earlier, coming in well below analysts' estimates and at the lowest level ever recorded.
The U.S. Commerce Department said the seasonally adjusted rate of 250,000 units last month was considerably lower than 301,000 for January, which was revised upward by 15,000 units. February sales are down 28% from a year earlier.
The seasonally adjusted estimate of new homes for sale was 186,000 in February, representing an 8.9 month supply. A normal healthy market usually holds a six month supply.
New home sales measure the number of newly constructed homes with a committed sale during the month. The level of new home sales indicates current housing market trends and, in turn, economic momentum and consumer purchases of furniture and appliances.
It is hopeful that the increase in new home sales in March marks the end of the downward trend that had taken sales to a record low. But with existing homes being sold at much more competitive prices, the demand for newly built properties will recover only very gradually.
The Mooney-Jones Team 919.443.5152
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