Dive Brief:
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A day after the National Association of Realtors reported sales of existing homes surged by 6.1% in March, the government said Thursday that new home sales fell 11.4% last month.
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The dip followed housing’s strongest monthly performance in seven years in February and marks a four-month low for new home sales, according to numbers from the U.S. Commerce Department.
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Despite the decrease, homebuilders remain optimistic about a strong spring selling season, David Crowe, chief economist of the National Association of Home Builders, said in a press release. “After two robust months of new home sales, some readjustment is inevitable,” he said. “Pent-up demand should keep the market moving in the right direction.”
Dive Insight:
Some economists suggested the snowy winter, which temporarily shut down construction sites in many areas, might have delayed sales that ordinarily would occur in March for a month or two.
“There are opposing forces there for housing demand, but on net the trend looks pretty favorable,” Michael Feroli, chief U.S. economist at JP Morgan Securities in New York, told Bloomberg.
