New-Home sales hit 15-year high in March

After slowing down over the winter months, new-home sales have roared back in March. According to data released by the U.S. Census Bureau and the Department of Housing and Urban Development, sales in March were the highest recorded in 15 years.

In March the rate of new single-family home sales rose to a seasonally adjusted rate of 1,021,000. This is up 20.7% from February’s rate of 846,000. It is a 66.8% increase from March 2020. This is the highest recorded rate since 2006.

The median sales price on new homes was $330,800 in March. Currently, there is a new home inventory 307,000. If homes continue selling at the same rate, this supply will last 3.6 months.

Sales slowed a bit in February, which is a typically tepid month. But the steep increase into March shows that the single-family home market is still hot across the country.

Economists speculate that there is even more demand out there than the high sales numbers show. Low inventory and rising prices may be pushing some would be homebuyers off the market. Some people are putting off buying a home until after the market cools down a bit.

Broken down by region, new-home sales were up from February everywhere except in the West. There, the March numbers showed a decrease of 30% from the prior month. The Midwest was the strongest region with a monthly increase in sales of 40.2%. Compared to the same time last year, new-home sales were up more than 90% in the Midwest.

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