The real estate market of USA recorded an unexpected increase in new home sales during March, defying general expectations that anticipated a slowdown due to high mortgage rates and shortages in the housing supply. This increase comes at a time when buyers face increasingly challenging financial conditions, marked by a high mortgage interest rate environment and one limited supply of available properties.
In March, the new single-family home sales experienced an increase of 8.8% to reach a seasonally adjusted annual rate of 693,000 units, according to data provided by the United States Department of Commerce.
This increase exceeded economists’ projectionswhich anticipated a rate of 670,000 units, representing the largest monthly advance since December 2022. This rebound in the sale of new homes contrasts with the dynamics observed in the housing segment. existing homeswhich showed a decrease of 4.3% in March, adjusting the rate to 4.19 million units, thus marking the steepest drop in this sector in more than a yearaccording to figures from the National Association of Realtors.
The geographical distribution of the increase in sales reflected a significant variation, being the northeastern region of the United States where the largest increase was recorded, with 27.8% compared to the previous month. This points to an unequal distribution of growth real-estate market throughout the country, with some areas experiencing a more robust rebound than others.
Analysts attribute this growth to a combination of factors, including the persistent shortage of existing housing in the market and the strategy of some builders to offer incentives to attract buyers.
Despite the mortgage rates located above 6%, builders have sought to maintain the pace of sales through various strategies, such as price reductions, mortgage rate deals and closing cost payments. This tactic appears to have contributed to the recent boost in sales, although the market continues to face the challenge of a insufficient supply to meet demand, which in turn impacts housing affordability.
The average price of new homes sold in March reflected a rises, reaching USD 430,700which constitutes an increase of 6% compared to February and marks the highest level reached since August of the previous year, despite a decrease of 1.9% compared to the same month of the previous year. This increase could indicate a preference among buyers for higher-value homes, as well as a possible adjustment by builders to market conditions, reducing promotions and concentrating their offer in higher price segments.
The real estate market for new constructions continues, therefore, showing signs of resilience, despite the adverse factors present, such as the increase in mortgage rates and the shortage of supply. However, the future stability of the market will depend on multiple variables, including the behavior of the economy in general, the Federal Reserve interest rate policiesand the balance between supply and housing demand.
