New Home Sales climbed again in March, making it the fourth month in a row. Those in the industry say that this is due to the ease in mortgage rates and the low inventory of existing homes. Buyers are now looking at new construction more than ever.
According to the US Department of Housing and Urban Development and the US Census Bureau, there was a 9.6% rise in new construction home sales from February to March. This could be a good sign that the housing market is starting to stabilize. Sales of new single-family homes in March were at a seasonally adjusted annual rate of 683,000 which is still down from a year ago at 707,000. New home sales rose from $438,200 in February to $449,800 in March.
“Buyers have begun to adjust to the elevated mortgage rate levels, especially in areas where home prices have adjusted downwards to compensate. Despite signs of economic uncertainty in March, which included news of bank failures, buyers are still showing demand for new homes,” said Kelly Mangold of RCLCO Real Estate Consulting.
“Demographic drivers remain strong as more households move into family years, and remote hybrid work continue to have a foothold in many industries, driving buyers to seek space for extra bedrooms and/or office space in their homes,” says Mangold.