New-home sales rose for the fourth month in a row in March as mortgage rates eased and the share of existing homes hitting the for-sale market continued to fall. Sales of newly constructed homes increased 9.6% from February to March, but were down 3.4% year-over-year.
Despite elevated demand, total inventory of new homes available to buy fell from 436,000 at the end of February to 432,000 at the end of March, CNN reports.
“Buyers have begun to adjust to the elevated mortgage rate levels, especially in areas where home prices have adjusted downwards to compensate,” said Kelly Mangold of RCLCO Real Estate Consulting. “Despite signs of economic uncertainty in March, which included news of bank failures, buyers are still showing demand for new homes.”
“Demographic drivers remain strong as more households move into family years, and remote and hybrid work continue to have a foothold in many industries, driving buyers to seek space for extra bedrooms and/or office space in their homes,” said Mangold.
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