A sharp decline in the West sent New Home Sales lower by 1.5 percent in March, but that’s only part of the story.
What is the New Home Sales report? The New Home Sales report shows the number of newly constructed homes with a committed sale each month. The level of sales indicates housing market trends and housing demand. The monthly supply also serves as a clue to the level of housing pressure.
What’s happened recently? The Commerce Department reported that March New Home Sales fell from February to an annualized and seasonally-adjusted rate of 511,000, below expectations by about 10,000 homes.
What’s the bottom line? Despite the decline in sales in the West, sales of new homes in the East were unchanged, and in the Midwest and South sales increased. Also, when considered on an annual basis, New Home Sales actually rose 5.4 percent between March 2015 and March 2016. Along with the rise in Existing Home Sales in all four regions of the country in March, overall the March New Home Sales report signals that the housing market remains on solid footing.
I’ll continue to monitor housing reports closely, but if you have any immediate questions don’t hesitate to contact me.