New Home Sales Up Sharply in March

Key Highlights

– March sales volume exceeded all forecasts

• New home sales jumped +20.7% in March

Rebound of New Home Sales in March

March 2021 new home sales reflected the optimistic spring weather that arrived.  Purchases of new single-family homes jumped +20.7% from February’s sales volume to a 1.02M annualized pace.

This new home sales jump was the highest level since 2006, according to a survey by Bloomberg.

New-home sales represent approximately 10% of the housing market nationwide.

Residential Construction Also Picked Up

Construction of single-family homes mirrored this uptick in new home sales. The number of new homes scheduled to be built also rose to the highest pace since September 2006.

Home Prices Continued to Climb

Along with sales volume, new home prices surged to record highs.  The median price of a newly constructed home increased to $330,800 compared to last year during March.

At the pace of sales in March, existing supply of new single-family homes would have lasted 3.6 months compared with the February pace of 4.4 months. The National Association of REALTORS® indicated that the supply of existing homes in March hit a record-low of just 18 days.

Regional Sales Volume Up in March

This soaring increase in sales volume of new-homes came just a month after February’s challenging weather dampened sales activity.

The South had the largest monthly increase, +40.2%, of new-home sales in 40 years.  Sales volume also climbed in the Midwest and Northeast.

Thanks to the National Association of REALTORS® and Bloomberg.

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