Sales of new single-family homes surged in March, exceeding economist forecasts. The increase in sales, driven by activity in the South, comes despite concerns about economic growth, mortgage rates, and consumer sentiment. The median sales price of new homes fell, reflecting increased supply at lower price points. Inventory increased to the highest level since 2007.
Key Points
Sales rose 7.4% in March to a seasonally adjusted annual rate of 724,000
Median sales price fell to $403,600, down 7.5% from a year earlier
Inventory increased to 503,000 homes for sale, the highest since 2007
Pros
Surge in new home sales
Exceeded economist forecasts
Reflects ongoing resilience in the U.S. economy
Cons
Concerns about economic growth, mortgage rates, and consumer sentiment