New home sales rose in March rose 8.8% from a downwardly revised rate in February, according to data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
The seasonally adjusted annual rate for March was 693,000—a rate that was up 8.3% from one year prior.
“Although consumer demand has been somewhat dampened due to higher interest rates, builders continue to supply new homes to the market to lift inventory to make up for the low resale supply,” said Carl Harris, chairman of the National Association of Home Builders (NAHB) and a custom home builder from Wichita, Kan. “Rates moving above 7% however, will move some home buyers to the sidelines as the spring progresses.”
“Shelter inflation remains the largest, lingering obstacle to lower inflation,” said NAHB Chief Economist Robert Dietz. “More housing supply will ultimately tame shelter inflation growth and lower interest rates. This will improve the cost of financing for land developers and home builders and enable more attainable housing supply.”
The median new home sale price in March was $430,700, up nearly 6% from February, and down 1.9% compared to a year ago.
