New home sales in the United States continue to demonstrate a strong pattern, increasing almost 10% in March 2022 compared to the previous month. According to data released by the U.S. Census Bureau and the Department of Housing and Urban Development, sales of new single-family homes reached an annual rate of 883,000 in March, up from 846,000 in February.
The new home sales figures for March 2022 exceeded analysts’ expectations, as the consensus forecast had been for a slight drop to around 800,000 annualized sales. This indicates that demand for new homes remains robust, despite the ongoing challenges faced by the housing industry, such as rising costs and supply chain disruptions.
Regionally, the South saw the largest increase in new home sales in March, rising by 17.1% from the previous month, while sales in the West remained relatively unchanged. Meanwhile, sales in the Northeast and Midwest decreased by 3.3% and 12.8%, respectively.
The median sales price for new homes sold in March 2022 was $402,800, an increase of 0.8% from February’s median price of $399,800. However, the average sales price for new homes dropped by 2.2% in March to $457,300 from $467,500 in February, suggesting that builders are offering discounts to attract buyers.
The report also showed that the inventory of new homes for sale at the end of March 2022 was 322,000, which represents a 4.4-month supply at the current sales rate. This is slightly higher than February’s supply of 4.3 months, indicating that builders are working to keep up with demand by constructing more new homes.
Overall, the data indicates that the U.S. new home sales market remains strong and resilient, despite ongoing challenges such as supply chain disruptions and rising costs. This is good news for the housing industry, as it indicates that demand for new homes is likely to remain robust in the months to come.