March New Home Sales Up 4.5%

HUD and the Census Bureau yesterday reported March new home sales rose by 4.5 percent from February and by 3 percent from a year ago.

The report said new single-family home sales rose to 692,000 in March, seasonally annually adjusted, up by 4.5 percent from February’s revised rate of 662,000 and up by 3 percent from a year ago (672,000).

Regionally, sales improved everywhere except the Northeast, where sales fell by 22.2 percent to just 28,000 units in March, seasonally annually adjusted, from 36,000 units in February and fell by 20 percent from a year ago.

In the largest region, the South, sales rose by 3.6 percent to 401,000 units in March, seasonally annually adjusted, from 387,000 units in February and improved by 9.3 percent from a year ago. In the West, sales rose by 6.7 percent to 176,000 units in March from 165,000 units in February but fell by 4.3 percent from a year ago. In the Midwest, sales jumped by 17.6 percent to 87,000 units in March from 74,000 units in February and improved by 1.2 percent from a year ago.

Mark Vitner, Senior Economist with Wells Fargo Securities, Charlotte, N.C., said the report came in “well ahead” of expectations. “Lower mortgage rates and a shift toward construction of more modestly priced homes are boosting sales,” he said. “Builder discounting and a shift in focus toward building lower priced homes in more affordable areas continue to keep price increases in check.”

HUD/Census reported the median sales price of new houses sold rose to $302,700 in March; the average sales price was $376,000. Both figures rose by 5 percent from a year ago.

The report said the seasonally adjusted estimate of new houses for sale at the end of March rose to 344,000, representing a supply of 6.0 months at the current sales rate.