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NAFCU Research Assistant Yun Cohen said Tuesday that new-home sales increased 5.8 percent in March despite affordability issues and inventory constraints.

"New-home sales rose for the third straight month in March to an eight-month high," Cohen wrote in a Macro Data Flash, citing Census Bureau data. "Transactions continue to shift towards the pricier end of the market. The share of homes sold costing $300,000 or more hit 56 percent in March, up from 48 percent in February."

Cohen noted that inventory remains tight, with just 5.2 months of supply.

The median new-home price, non-seasonally adjusted, increased from $293,100 in February to $315,100 in March.

In related news, the Federal Housing Finance Agency on Tuesday said U.S. house prices increased 0.8 percent in February, according to its seasonally adjusted House Price Index. The index is calculated based on information from mortgages sold to or guaranteed by government-sponsored enterprises Fannie Mae and Freddie Mac.