New Home Sales Decline in March

Summary New home sales fell 8.6% in March to a 763,000-unit pace. While this month’s drop was larger than expected, sales for the prior three months were revised substantially higher. Estimates for new home sales for the prior three months were increased by a cumulative 131,000 units. March’s 763,000-unit sales pace was close to consensus estimates and only marginally behind February’s initial pace. New home sales have averaged a 814,333-unit pace through the first three months of 2022, which is 5.6% above the revised count of 771,000 new homes sold in 2021. The median price of a new home was $436,700 in March, which is 21.4% higher than it was a year ago.

New Home Sales Are Stronger Than The Headline Suggests New home sales bounce around quite a bit from month-to-month, and data from previous months are often substantially revised. That was the case in March, which saw new home sales fall a larger-than-expected 8.6% to a 763,000-unit annual rate. While the percentage drop was more than expected, the sales pace was less than a percentage point off expectations. Data for the prior three months were revised up by a total of 131,000 units, and the pace for the first three months of the year now looks much stronger. READ FULL ARTICLE>>