The Census Department New Residential Construction report shows new home sale rose for the third month. Economists expected a pullback.
New Home Sales
Sales of new single‐family houses in March 2019 were at a seasonally adjusted annual rate of 692,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 4.5 percent above the revised February rate of 662,000 and is 3.0 percent above the March 2018 estimate of 672,000.
Sales Price
The median sales price of new houses sold in March 2019 was $302,700. The average sales price was $376,000.
For Sale Inventory and Months’ Supply
The seasonally‐adjusted estimate of new houses for sale at the end of March was 344,000. This represents a supply of 6.0 months at the current sales rate.
By Region
- Total: 692,000, up 4.5%
- Northeast: 28,000, down 22.2%
- Midwest: 87,000, up 17.6%
- South: 401,000, up 3.6%
- West: 176,000, up 6.7%
These are solid numbers.
Econoday notes “builders may have been giving discounts to drive sales. The median price of a new home fell 0.3 percent in March to $302,700 for year-on-year contraction at a steep 9.7 percent.”
Mike “Mish” Shedlock
Plenty of mortgage loans to go around, fairly easy to qualify for a mortgage right now, and very low interest rates so home sales should be healthy until the Fed starts raising interest rates and/or mass mortgage defaults start rising. Economics 101 at play here.
You can get $20,000. in incentives in downtown, Atlanta Ga! $15,000. for up grades and $5,000. toward closing cost on a townhome costing $423,000. Developers offering incentives use to mean a SLOW MARKET.
Glad you mentioned this about the Atlanta market. I am actually looking for a condo in Midtown. Your information is very helpful to me. Thanks for posting.
And yet, lumber prices are continuing to fall steeply downward. Anyone know how that squares with this report?
Really good news for home builders on multiple fronts.
I can’t explain lumber prices. Maybe many of the homes that sold were built a while ago. Or construction hasn’t started yet.
We’re running out of farms to chop up and plant McMansions here in CT. Just had the last farm in my town parceled out and 14 houses built last year. $440K apiece, with most sold.
Northeast is a tiny region – nearly irrelevant
Home sales way up yet home prices way down. Home sales way down in the NE but up everywhere else.
Tough to make an analysis.
Folks selling their houses in the NE for whatever they can get for them and then buying much cheaper in some red state?
Plus what Mish said – developers getting rid of inventory with discounts. So sorry if you already purchased a home in that developments and just saw your comps (and home equity) go way down.
The Northeast doesn’t look very solid.
Existing home sales there are also a disaster.