{"id":3060,"date":"2022-04-26T16:57:39","date_gmt":"2022-04-26T16:57:39","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2022\/04\/26\/new-home-sales-continue-to-slide-in-march\/"},"modified":"2025-03-13T02:41:31","modified_gmt":"2025-03-13T02:41:31","slug":"new-home-sales-continue-to-slide-in-march","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2022\/04\/26\/new-home-sales-continue-to-slide-in-march\/","title":{"rendered":"New home sales continue to slide in March"},"content":{"rendered":"\n<p>After dropping 2.0% in <a href=\"https:\/\/preprod.realtrends.com\/blog\/new-home-sales-continue-to-drop-in-february\/\" target=\"_blank\" rel=\"noreferrer noopener\">February<\/a>, new home sales were down yet again in <a href=\"\/\/\/Users\/brookleehan\/Downloads\/newressales.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">March<\/a>, decreasing 8.6% from the month prior to a seasonally adjusted annual rate of 763,000, according to data released by the <strong>U.S. Department of Housing and Urban Development<\/strong>&nbsp;and the&nbsp;<strong>U.S. Census Bureau<\/strong>&nbsp;on Tuesday.<\/p>\n\n\n\n<p>Year over year, new home sales were down 12.6% in March.<\/p>\n\n\n\n<p>\u201cFewer new homes are being sold because the shortages of construction materials are delaying building timelines,\u201d Holden Lewis, a home and mortgage specialist at <strong>NerdWallet<\/strong>, said in a statement. \u201cBuilders have trouble buying everything from windows to roof shingles. As a result of the scarcity, builders are selling homes closer to when the homes are completed and ready to occupy.\u201d<\/p>\n\n\n\n<p>Lewis remains optimistic that new home sales will pick up once supply chain issues, as well as labor and material shortages, get sorted out.<\/p>\n\n\n\n<p>\u201cGrowing affordability challenges are slowing new home sales and taking a toll on the housing market,\u201d Jerry Konter, chairman of the <strong>National Association of Home Builders<\/strong> (NAHB) added in a statement. \u201c<a href=\"https:\/\/preprod.housingwire.com\/articles\/purchase-mortgage-rates-move-north-to-5-11\/\" target=\"_blank\" rel=\"noreferrer noopener\">Mortgage rates<\/a> jumped nearly a full percentage point between the end of February and March and builders continue to face escalating construction and development costs which are putting upward pressure on new home prices.\u201d<\/p>\n\n\n\n<p>In March, the median sales price of a new home was $436,700, up from $421,600 a month prior.<\/p>\n\n\n\n<p>\u201cBuyers are facing sticker shock due to deteriorating affordability conditions and a lack of existing home inventory,\u201d NAHB assistant vice president of forecasting and analysis, Danushka Nanayakkara-Skillington, said in a statement. \u201cOnly 14% of new home sales in March were priced below $300,000.\u00a0A year ago, it was 34%.\u201d\u00a0\u00a0<\/p>\n\n\n\n<p>At the end of March, an estimated 407,000 new homes were still for sale. At the current sales rate represents a 6.4 months supply at the current sales rate, which is a 52.4% year-over-year increase. However, only 35,000 of the 407,000 are completed and ready to be occupied.<\/p>\n\n\n\n<p>New home sales were down month over month in all four major U.S. regions, with the South seeing the largest drop at 10.2%, followed by the Midwest (8.7%), the West (6.0%) and the Northeast (5.4%). Year over year, the Northeast and the West both saw new home sales increases of 12.8% and 21.0%, respectively, while the Midwest and the South saw annual decreases of new home sales of 13.8% and 24.7%, respectively.<\/p>\n\n\n\n<p>As the pace of new home sales has decreased, <a href=\"https:\/\/preprod.realtrends.com\/blog\/homebuilder-confidence-falls-as-sales-traffic-slows\/\" target=\"_blank\" rel=\"noreferrer noopener\">homebuilder confidence<\/a> has also dropped. In April the&nbsp;<strong>National Association of Home Builders<\/strong>&nbsp;(NAHB) and&nbsp;<strong>Wells Fargo Housing Market Index<\/strong>&nbsp;(HMI) fell to 77, marking the fourth consecutive month of declines. Experts blame diminishing sales traffic and the sharp jump in mortgage rates for declining builder confidence.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>After dropping 2.0% in February, new home sales were down yet again in March, decreasing 8.6% from the month prior to a seasonally adjusted annual rate of 763,000.<\/p>\n","protected":false},"author":34740,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[1760],"class_list":["post-3060","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.4 (Yoast SEO v26.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>New home sales continue to slide in March - RealTrends - 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