Newsroom
April 23, 2015
New-home sales plummet 11.4% in March
New-home sales in March plunged 11.4 percent – dropping from February's revised 543,000 annualized units to 481,000 annualized units – but remained 19.4 percent higher than a year ago, according to Census Bureau data analyzed by NAFCU Research Assistant Yun Cohen.
"Home-builder confidence ebbed in March but bounced back in April as assessments for current sales conditions, foot traffic and future sales improved," Cohen said in a NAFCU Macro Data Flash report. "Meanwhile, sales of existing homes surged in March, leaving the market with only 4.6 months' supply."
Sales dropped in three of the four regions in March, according to the Census Bureau. The Northeast region saw the largest decline (-33.3 percent), followed by the South (-15.8 percent) and the West (-3.4 percent). The Midwest rebounded from the recent down trend for a 5.9 percent gain.
Based on current-month sales, there were 5.3 months of supply in March, up from 4.6 months in February. The number of unsold homes left on the market increased from 209,000 to 213,000. The number of unsold homes is up 12.1 percent on a year-ago basis.
The median new-home price, non-seasonally adjusted, fell from $281,600 in February to $277,400 in March, according to the Census Bureau. March's prices are 1.7 percent lower compared to a year ago.
"The tightening existing-home market could encourage buyers to choose new homes instead," Cohen said. "The current low-interest rates and continued job growth will also help to improve new-home sales."
"Home-builder confidence ebbed in March but bounced back in April as assessments for current sales conditions, foot traffic and future sales improved," Cohen said in a NAFCU Macro Data Flash report. "Meanwhile, sales of existing homes surged in March, leaving the market with only 4.6 months' supply."
Sales dropped in three of the four regions in March, according to the Census Bureau. The Northeast region saw the largest decline (-33.3 percent), followed by the South (-15.8 percent) and the West (-3.4 percent). The Midwest rebounded from the recent down trend for a 5.9 percent gain.
Based on current-month sales, there were 5.3 months of supply in March, up from 4.6 months in February. The number of unsold homes left on the market increased from 209,000 to 213,000. The number of unsold homes is up 12.1 percent on a year-ago basis.
The median new-home price, non-seasonally adjusted, fell from $281,600 in February to $277,400 in March, according to the Census Bureau. March's prices are 1.7 percent lower compared to a year ago.
"The tightening existing-home market could encourage buyers to choose new homes instead," Cohen said. "The current low-interest rates and continued job growth will also help to improve new-home sales."
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