Sales of new single-family homes surged in March, exceeding all economist forecasts and adding to a string of upside surprises in recent economic data.
New home sales rose 7.4 percent to a seasonally adjusted annual rate of 724,000, according to the U.S. Census Bureau and the Department of Housing and Urban Development. That figure not only beat the consensus estimate of 682,000 but also topped the entire range of economist forecasts, which ran from 650,000 to 700,000. February’s sales figure was also revised slightly higher, from 676,000 to 674,000.
The jump in sales, driven largely by activity in the South, comes despite rising concerns about economic growth, elevated mortgage rates, and sliding consumer sentiment. It adds to a growing list of hard indicators—including strong employment and robust consumer spending—that point to ongoing resilience in the U.S. economy.
The median sales price of new homes fell to $403,600, down 7.5 percent from a year earlier, reflecting increased supply at lower price points. This will be a relief to Trump administration policy-makers, who have been working on plans to make homes more affordable, especially to young families who make up the bulk of first time homebuyers.
The average sales price was $497,700. Inventory ticked up to 503,000 homes for sale, the highest since 2007, representing 8.3 months of supply at the current sales pace.
The data suggest continued strength in housing demand entering the spring selling season, challenging expectations that tighter credit conditions and higher interest rates would meaningfully dampen activity.
The new home sales data follows a string of stronger-than-expected reports on jobs, durable goods, and consumer spending. Taken together, the indicators suggest that the real economy remains robust even as financial markets and forecasting models grow more cautious.