Sales of new single-family homes soared in March by 20.7 percent to a seasonally adjusted rate of 1.02 million, a high that has not been reached since 2006.
New single family home sales rose 20.7 percent in March to a seasonally adjusted rate of 1,021,000. That comes from a report released Friday by the US Census Bureau and the Department of Housing and Urban Development.
The number not seen since 2006 is a steep increase from previous month sales of 846,000 and 66.8 percent from new home 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, which corresponds to a delivery of 3.6 months at the current sales rate.
Coupled with a typical seasonal lull, February’s low numbers showed that many potential buyers were struggling to find a home due to lack of inventory and very high prices. While the March numbers represent a big uptick, the same issues persist and many potential buyers look longer or postpone the purchase altogether instead.
“The factors that fueled recent strength in the new home market persist – mortgage rates remain historically low, the supply of existing homes for sale continues to lag behind, and a wave of young adults are eagerly seeking ways to do so to do entry into the market, “Zillow economist Matthew Speakman said in a statement. “The building owners have clearly taken note of this, increased their activities in the last few months and expressed more confidence that the wave of home buyers will continue to increase in the future.”
New home sales have increased month-on-month in all regions except the West, where sales fell 30 percent from February. The Midwest recorded the largest increase in sales with 40.2 percent more sales compared to the previous month and 90.1 percent more sales than in the previous year.
Email Veronika Bondarenko