WASHINGTON—New home sales increased 4.5% from February's downwardly revised 662,000 annualized units to 692,000 units in March – a 16-month high, Census Bureau data show.
NAFCU Research Assistant Dhruv Singh noted there is conflicting data in the housing market.
"The existing market is still suffering from supply constraints and price growth, while the new home market has adequate inventory and a nearly 10% decline in prices from a year ago," Singh said. "Housing starts hit their lowest point in nearly two years last month, but builder sentiment is rising. NAFCU expects the strong labor market and absence of further rate hikes to result in modest sales growth over the remainder of the year."
Growth in All Regions But One
Sales rose in three of the four regions in March. Sales in the Midwest increased 17.6%, followed by gains in the West (+6.7%) and the South (+3.6%). Only the Northeastern U.S., where sales were down 22.2%, saw a decrease.
Based on current month sales, there were six months of supply in March, down from 6.1 months in February. The number of unsold homes left on the market fell from 345,000 to 344,000 units, 15.8% increase from a year ago, Singh said.