New home sales in the U.S. rebounded in March with a broad bounce as potential buyers struggled
Sales of new single-family homes rose 8.8% on an annual basis last month to 693,000, the fastest since September, government data showed on Tuesday. Economists polled by Bloomberg gave an average estimate of 668,000.
The figures indicate that sales have stabilized somewhat in recent months, although the data is volatile. Underlying demand remains strong, but buyers are still constrained by high mortgage rates and prices, which limits the extent to which the housing market can gain momentum.
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As the resale market struggles with a lack of inventory, builders are stepping in to fill the void. The supply of new owner-occupied homes increased this month to 477,000, the highest number since 2008.
Tuesday’s Commerce Department report also showed that the average sales price of a new home fell 1.9% from a year ago to $430,700 in March.