Sales of new homes fell 8.6% in March to a seasonally adjusted annual rate of 763,000, the Census Bureau reported. Compared with March 2021, new home sales dropped 12.6%.
“Growing affordability challenges are slowing new home sales and taking a toll on the housing market,” stated Jerry Konter, chairman of the National Association of Home Builders (NAHB). “Mortgage rates jumped nearly a full percentage point between the end of February and March, and builders continue to face escalating construction and development costs, which are putting upward pressure on new home prices.”
The median sales price in March was $436,700, a 21% increase compared with March 2021. Only 14% of new home sales in March were priced below $300,000, compared with 34% one year ago, according to NAHB.
Regionally, on a year-to-date basis, new home sales declined 9.2% in the Midwest and 13.9% in the South. New home sales increased 10.5% in the Northeast and 8.5% in the West.