Sales of new U.S. single-family homes increased this year for two consecutive months, in February and March, just in time for the spring buying season. New home sales surged 7.4% to a seasonally adjusted annualized rate of 682,000 units in March. Sales increased to a rate of 635,000 units in February from 583,000 units in January, when they were weighed down by harsher weather conditions in the winter months.
Despite the strong sales in March and February, new housing inventory remained high, indicating that the housing market remains in the homebuyer’s favor. With supply still elevated, the median new house price dropped 6.2% to $387,400 in March from a year earlier. Builders are continuing to offer incentives to attract homebuyers.
