Real Estate

New-Home Sales Soar To 15-Year High

New single-family home sales catapulted 20.7 percent to a seasonally adjusted rate of 1.02 million in March, a high not seen since 2006.

Sales of new single-family homes rose by 20.7 percent to a seasonally adjusted rate of 1,021,000 in March, according to a report released Friday by the U.S. Census Bureau and the Department of Housing and Urban Development.

A high unseen since 2006, the number is a a steep climb from last month’s rate of 846,000 and 66.8 percent above new-homes sales in March 2020. The median sales price of all new single-family homes was $330,800 while the number of new homes for sale on the market was 307,000, a supply of 3.6 months at the current sales rate.

U.S. Census Bureau and the Department of Housing and Urban Development

Along with a typical seasonal lull, February’s low numbers showed that many potential buyers were struggling to find a house due to lack of inventory and very high prices. While March’s numbers are a major rebound, the same problems persist and many would-be buyers are instead searching for longer or putting off buying altogether.

“The factors that have fueled the recent strength in the market for new homes are holding fast – mortgage rates remain historically low, the supply of existing homes available for sale continues to fall short of demand and a wave of young adults are eagerly seeking ways to enter the market,” Zillow Economist Matthew Speakman said in a statement. “Builders have clearly taken note, upping their activity in recent months and expressing more confidence that the wave of home shoppers will continue to swell going forward.”

New-home sales are up month over month across every region except the West, which saw a 30 percent drop in sales from February. The Midwest saw the biggest increase in sales, with 40.2 percent more sales from last month and 90.1 percent more sales than last year.

Email Veronika Bondarenko

What's your reaction?

In Love
Not Sure

You may also like

More in:Real Estate

Leave a reply

Your email address will not be published. Required fields are marked *