New Home Sales Post Record In March

New-home sales posted an all-time record in March, buoyed largely by the second lowest interest rates since 1956 and a strengthening national economy.

The pace of new single-family-home sales increased 8.9 percent over an already strong February to a seasonally adjusted annual rate of 1.228 million, the Commerce Department reported. This was a 21.8 percent increase over the March 2003 pace.

“The market is very strong and interest rates are still very attractive,” said NAHB Chief Economist David Seiders. “Though interest rates are beginning to rise as the economy improves, we still expect the housing market to remain strong because the fundamentals — household incomes, employment and household formations — are strong.”

Three regions registered sales increases for the month. The South posted the largest increase with a 19.3 percent gain. The Midwest posted a 5.0 percent gain and the West registered a 5.1 percent sales increase. Sales in the Northeast declined 24.3 percent for the month, but sales for the first quarter of the year — an increase of 28.7 percent over the first quarter of 2003 — was the highest percentage change of all four regions.