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New home sales rise 4%

4/25/2018
Sales of new single-family houses in March 2 increased 4% to a seasonally adjusted annual rate of 694,000 from the revised February rate of 667,000, according to the latest data released by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau

The latest total is also 8.8% above the March 2017 estimate of 638,000. The median sales price of new houses sold in March 2018 increased 4.8% to $337,200. The average sales price was $369,900.

The seasonally-adjusted estimate of new houses for sale at the end of March was 301,000. This represents a supply of 5.2 months at the current sales rate, the Commerce Department said.

Regionally, the West led sales with a 28.3% increase and reaching their highest level since December 2006. Sales rose 0.8% in the South.

But sales plummeted 54.8% in the Northeast and fell 2.4% in the Midwest.

“The March new home sales report is consistent with our solid builder confidence readings over the past several months,” NAHB Chairman Randy Noel, said in response to the latest results.

A custom home builder from LaPlace, La., Noel said, “As consumer confidence grows and more prospective buyers enter the housing market, the sales numbers should continue to make gains.”

Strong numbers in the West were in agreement with regional economic factors, according to the NAHB.

“We saw sales move forward in the West and the South regions, which is in line with recent evidence of faster growth in population, employment and single-family construction in these areas,” said NAHB Senior Economist Michael Neal. “But with nationwide economic growth and favorable demographics, we can expect continued strengthening of the housing market across the country.”

 
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