New Homes Sales Up Sharply in March

WASHINGTON D.C. - Sales of new single-family homes in March 2005 were at a seasonally adjusted annual rate of 1.431 million, according to estimates released Tuesday by the U.S. Census Bureau and the Department of Housing and Urban Development.

The March 2005 figure is 12.2 percent above the revised February rate of 1.275 million, and is 12.7 percent above the March 2004 estimate of 1.270 million.

?EUR??,,????'??This surprisingly good number shows there's still plenty of demand in today's new-home marketplace,?EUR??,,????'?? said David Wilson, president of the National Association of Home Builders (NAHB). ?EUR??,,????'??It may be that higher mortgage rates pushed more fence-sitters to go for it last month, which often happens when further rate gains are expected.?EUR??,,????'??

The median sales price of new houses sold in March 2005 was $212,3000; the average sales price was $281,300. The seasonally adjusted estimate of new houses for sale at the end of March was 433,000, representing a supply of 3.6 months at the current sales rate.

?EUR??,,????'??The strength of this market continues to surprise most experts, and March's big acceleration in new-home sales was both unexpected and unaccounted for by our own builder surveys and other market signals,?EUR??,,????'?? NAHB Chief Economist David Seiders said. ?EUR??,,????'??Given the pace of sales to date and the slimmer inventories of unsold homes, clearly the production side of this business remains exceptionally healthy. We are, however, keeping a close eye on investor activity in some extremely hot markets.?EUR??,,????'??

Sales rose 22 percent in the Midwest, 14 percent in the South and 9.9 percent in the West, and fell 8.9 percent in the Northeast. The median price, which fluctuates depending on which regions are strong and the types of homes being sold, fell to $212,300 in March from $234,100 in April. The median price rose 1.3 percent from the year-earlier month.

Total New Houses Sold During Period: 1,431,000
Percent change from last month:		+12.2
Percent change from last year:		+12.7

New Houses Sold During Period By Construction Stage-Survey:
Total sold:					144,000
Homes sold but not started:			62,000
Homes sold and under construction:		49,000
Homes sold and completed:			33,000

Houses Sold by Sales Price:  	% Distribution-Survey
Total:				144,000 	100%
Under $100,000		6,000		5%
$100,000 - $124,999		9,000		16%
$125,000 - $149,999		20,000		13%
$150,000 - $199,999		31,000		23%
$200,000 - $249,999		21,000		15%
$250,000 - $299,999		13,000		9%
$300,000 and over		45,000		28%

(Percentages may not add up to 100 due to rounding)