U.S. March New Home Sales - Bounce probably assisted by weather, no clear trend
March new home sales at 724k are up by 7.4% and the highest since April 2024. The strength outperforms most recent housing sector surveys though there is still little clear direction to trend. Improved weather is probably the main reason for the monthly bounce.
Looking ahead risks are probably on the downside with Fed easing unlikely unless the economy slows significantly, suggesting the housing market will race restraint either from restrictive policy or a weakening economy. However at this point the market is holding up.
Regional data shows strength concentrated in the South, which is by far the largest region.
Prices look subdued. On the month the median fell by 1.9% while the average rose by 1.0%, but yr/yr data is increasingly negative, the median at -7.9% from -2.2% and the average at -4.7% from -3.3%.
