Sales of new single‐family houses in March 2023 were at a seasonally adjusted annual rate of 683,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development (HUD). This is 9.6% above the revised February rate of 623,000, but is 3.4% below the March 2022 estimate of 707,000.
The median sales price of new houses sold in March 2023 was $449,800. The average sales price was $562,400.
The seasonally adjusted estimate of new houses for sale at the end of March was 432,000. This represents a supply of 7.6 months at the current sales rate.
Sales jumped 170.8% to 65,000 in the Northeast, 29.8% to 161,000 in the West and 6% to 71,000 in the Midwest, but fell 5.4% to 386,000 in the South. The median price of new houses sold was $449,800, while the average sales price was $562,400 compared to $435,900 and $511,800, respectively, a year ago. There were 432,000 houses left to sell, the lowest since April 2022.
“The new home sales figures reflect the fact that buyers are increasingly finding themselves on the lot of a new subdivision as the availability of existing homes for sale remains very limited,” said Bright MLS Chief Economist Dr. Lisa Sturtevant. “While sales of new homes are down compared to last year, the slowdown is much more pronounced among sales of existing homes. Inventory is a big reason. Nationally, new homes account for about one out of three homes available for sale, which is up from one out of 10 homes in a more typical housing market.
“The uptick in the availability of new homes for sale is not necessarily a boon for first-time homebuyers who are facing the most competition in the market. New home prices have typically been 10% – 15% higher than existing homes. Bright’s recent survey shows that more moderately priced homes see more multiple offers and are more likely to be sold over list price,” added Sturtevant.
“In recent years, it has been nearly impossible for builders to construct starter homes. High land costs, regulatory limitations and labor shortages have all contributed to the obstacles to new home construction. On top of that, builders have been capitalizing on opportunities in the build-to-rent single-family market. This trend has offered more opportunities for rentals, though it means first-time homebuyers will still find challenges,” said Sturtevant.
Alicia Huey, chairman of the National Association of Home Builders (NAHB) and a builder and developer from Birmingham, Alabama, added that “a lack of resale inventory combined with many builders offering price incentives helped to push new home sales higher in March. However, sales are down 3.4% compared to a year ago because of the shortage of electrical transformer equipment and building material price volatility.”
“The average Freddie Mac mortgage rate gradually fell from near 6.7% at the beginning of March to 6.3% at the end of the month, and this helped to push new home sales higher in March,” said Danushka Nanayakkara-Skillington, NAHB’s assistant vice president for forecasting and analysis.
