New Home Sales Fall for the Third Consecutive Month in March

The current month’s 8.6 percent drop translates into an annual shortfall of 12.6 percent.

Labor and supply issues continue to impede construction of new homes as under 9 percent of homes sold in March were fully completed.
Inventory of homes for sale in March rose modestly to 407,000 units but part of the increase was for homes that have not yet been started.
Home prices continue to climb to historic highs, with the median price up by 3.6 percent in March to $437,000, a gain of 21 percent over last year.
Builders are focusing on high-end homes, with more than 10 percent exceeding $750,000, nearly double the 6 percent of a year ago.
The drop of March home sales was across all four regions, ranging from a decline of 10.2 percent in the South to 5.4 percent in the Northeast.