New us home sales fall in march

Photo credit: Michael Patrick

Sales of new build homes in the USA fell last month, according to new figures.

Data from the US Department of Housing and Urban Development and the US Census Bureau show that sales of newly built, single-family homes fell 11.4 percent in March to a seasonally adjusted annual rate of 481,000 units.

The dip follows positive figures from the National Association of Realtors, which found that existing home sales had reached their highest annual rate in 18 months in March.

Total existing-home sales increased 6.1 per cent last month, meaning that sales have increased year-over-year for six consecutive months and are now 10.4 per cent above a year ago, the highest annual increase since August 2013.

Regionally, new home sales rose 5.9 per cent in the Midwest. Sales fell 33.3 per cent in the Northeast, 15.8 per cent in the South and 3.4 per cent in the West.

The surprising negative statistics, released at the end of last week, contributed to a softening of the dollar, helping to ease the currency against both the euro and the pound.

The National Association of Home Builders, though, are upbeat about the figures.

"After two robust months of new home sales, some readjustment is inevitable," comments David Crowe, chief economist of the NAHB. "This is the best first quarter since 2008, and attractive mortgage rates and pent-up demand should keep the market moving in the right direction."

"Our surveys show that builders remain optimistic about the housing market," adds NAHB Chairman Tom Woods, a home builder from Blue Springs, Mo. "We expect this spring to be a better buying season than we’ve seen in recent years."