Obliterating market estimates, sales of new homes in the United States of America rose to a 16-month high in March, according to official US government data on Tuesday.
According to the report published by the Census Bureau and Department of Housing and Urban Development in the US, sales of single-family homes soared 4.5% to 692,000. The median sale price slipped 9.7% to a two-year low of $302,700.
The numbers indicate that the Fed holding the borrowing costs back, along with low mortgage rates and a lift in wages have aided the housing market — especially after a disastrous past year.
The number of properties sold where construction is yet to commence is now at 200,000 — this has been the highest since November of 2017, indicating that the market is giving confidence to more buyers.
Among all sales, new home buys are 10% of them. The Midwest region recorded a 176% jump in new home purchases, while the Northeast witnessed a 22.2% drop.
The US data in March is an indicator that the market is returning to its original schedule after being offset by the government shutdown that plagued the end of 2018 and ushered in a tumultuous beginning to 2019.
The March figures mark a return to the original schedule following delays from the government shutdown that ended in January.