U.S. New-Home Sales Rise More Than Forecast After Winter Setback

[DonViejo]

By Olivia Rockeman

April 23, 2021, 10:02 AM EDT Updated on April 23, 2021, 10:26 AM EDT

Sales surged to the highest since 2006 as South led gains

Figure exceeded all economists’ estimates in Bloomberg survey

U.S. new-home sales rebounded sharply in March to the highest since 2006, suggesting that the housing market is back on track after winter storms impeded demand in February.

Purchases of new single-family homes increased 20.7% last month to a 1.02 million annualized pace after an upwardly revised 846,000 rate in the prior month, government data showed Friday. The figure exceeded all forecasts in a Bloomberg survey.

Inclement weather delayed the search for homes in February and a lack of properties for sale has also hindered purchases. But borrowing costs remain historically low -- despite inching up in recent weeks -- and demand for more space is still strong as the pandemic drags on.



Residential construction has also picked up steam and backlogs are mounting despite higher costs. The number of homes sold in March and awaiting the start of construction climbed to the highest level since September 2006, Friday’s report showed.

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https://www.bloomberg.com/news/articles/2021-04-23/u-s-new-home-sales-rise-more-than-forecast-after-winter-setback

[The Wizard]

1. The pandemic

has caused many to leave crowded apartment buildings and create a larger demand for suburban living.

[WHITT]

2. The

increase of 20.7% is correctly compared to March of the previous year, but that was when the national economy shut down, so it's a faulty, misleading comparison.