How are new home sales performing in the current market?

Builder meeting with woman at new home under construction | mortgage rate news

New home sales surge

According to data from the U.S. Census Bureau and the Department of Housing and Urban Development, new home sales surged from February to March. New homes sales increased 8.8% in March 2024 when compared to February 2024. Sales of new homes were also up 8.3% on a year-over-year chart.

Also, the median sales price of a new home was about $430,700 in March. This is actually down about 1.8% from last year. The decrease was partially attributed to home builders focusing on smaller, more affordable units to appeal to buyers focused on price.

Gregg Logan, managing director of RCLCO Real Estate Consulting, stated, “The willingness of the major homebuilders to utilize incentives such as price reductions, mortgage rate buy-downs, and paying buyers’ closings costs continues to support a healthy pace of new-home sales.”

Where are mortgage rates at ahead of inflation data?

The national average for a 30-year, fixed-rate mortgage rate dipped 0.05% to 7.38%* on Tuesday. This is the lowest point the national average for a 30-year, fixed-rate mortgage rate in the past week.

The market is waiting for inflation data on Friday. Inflation data will give an indication of how hawkish or dove-ish the Federal Reserve will sound at their press conference next week.

Where is home inventory on the increase?

A recent article from detailed the states that have seen an increase or decrease in housing inventory over the past year.

The state with the greatest increase in available home inventory? Florida. The sunshine state had 57% more active listings in March 2024 than it did in March 2023. Alabama, Mississippi, South Carolina, North Carolina, and Texas have all seen increases of 30% or more over the past year.

When it comes to decreases only four states in the U.S. have seen a decrease in housing inventory. Nevada is down 26% year-over-year. Illinois was down 5%, New York was down about 4% and New Jersey was just slightly lower.

However, the entire nation is still well below pre-pandemic housing market inventory.

* National average rates accurate as of 4/23/24 from and are not advertised rates from Guaranteed Rate.

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