Despite ongoing building material issues, new single-family home sales flourished in March, reaching the strongest seasonally adjusted annual rate since September 2006, according to the National Association of Home Builders. Estimated sales of new single-family homes advanced 20.7% from February and 66.8% compared to March 2020, according to data from the U.S. Department of Housing and Urban Development and the Census Bureau. Housing remains a leader in the overall economy, and builder confidence, as shown in the NAHB/Wells Fargo Housing Market Index, reflected this by inching up to 83 this month.
Consider that despite elevated unemployment, new home sales are estimated to be 34.4% higher for the first three months of 2021 compared to the first three months of 2020.
Sales-adjusted inventory levels declined again, falling to a just a 3.6 months’ supply in March. The count of completed, ready-to-occupy new homes is just 37,000 homes nationwide. Total inventory declined 44.6% year-over-year, with inventory down to 307,000.
Moreover, sales are increasingly coming from homes that have not started construction, with that count up 150% year-over-year, not seasonally adjusted (NSA). These measures point to continued gains for single-family construction ahead.
Advertisement
Related Stories
Economics
Housing Share of GDP in Q1 2024 Rises Above 16%
The increase marks the first time GDP has surpassed 16% since 2022
Economics
Shelter Costs Drive Inflation Higher Than Expected in January
January Consumer Price Index data show inflation increased more than anticipated as shelter costs continue to rise despite Federal Reserve policy tightening
Economics
Weighing the Effects of the Fed's and Treasury's Latest Announcements
The upshot of the Jan. 31 announcements is that while mortgage rates will stay higher for longer, they're likely to hold steady