cloudyn.png
Sunday August 25th, 2019 10:45PM

US new-home sales climbed 4.5% in March

By The Associated Press
Related Articles
  Contact Editor

WASHINGTON (AP) — Sales of new U.S. homes increased 4.5% in March, the third straight monthly gain as the housing market appears to be cautiously recovering from a mortgage rate spike last year that caused homebuying to slump.

The Commerce Department said Tuesday that new homes sold at a seasonally adjusted annual rate of 692,000 in March, up from 662,000 in February. For the first three months of 2019, new-home sales were 1.7% higher than the same period a year ago.

March's sales pace was the strongest since November 2017, a sign that the market for newer properties is building some momentum. New-home sales began to rebound after the average 30-year mortgage rate fell from its recent peak of nearly 5% in November 2018.

"Homebuilders continue to indicate encouraging orders and traffic trends, crediting the drop in mortgage rates with re-energizing housing demand," said Stephen Stanley, chief economist at Amherst Pierpont Securities. "The next 2-3 months will be critical, as the spring selling season will be a telling test of whether housing demand is truly firming."

Yet the housing market has been uneven in recent months, a sign that years of price gains have hurt affordability and that lower mortgage rates can only remove a degree of the pressure from higher costs. Sales of existing homes — which make up the bulk of purchases — plunged 4.9% in March, the National Association of Realtors said Monday.

The median sales price of a new home in February tumbled 9.7% to $302,700.

Price pressures are creating a search for more affordable options.

In March, 16% of new-homes were sold for less than $200,000. This was marked increase from 2018, when just 12% of new homes sold for less than $200,000. Still, monthly sales figures can be volatile and the industry's preference for more profitable homes at higher prices could cause that share to dip in the coming months.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy, AP Business - Personal Finance, AP Business - Real Estate
© Copyright 2019 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
US stocks move broadly higher as earnings reports flow in
US stocks rise broadly as major companies issue a stream of solid earnings reports
10:29AM ( 6 minutes ago )
The Latest: Analysts: Iran sanctions bullish for oil prices
Energy analysts at Raymond James & Associates are warning that U.S. imposition of tougher Iranian oil sanctions is "unambiguously bullish" for the price of oil
10:11AM ( 24 minutes ago )
Flores says Biden's jokes about touching are 'disrespectful'
A woman who accuses former Vice President Joe Biden of touching her without permission says it's no laughing matter and is criticizing Biden for making jokes about it
10:05AM ( 31 minutes ago )
Associated Press (AP)
The Latest: EU regrets US decision on Iran sanctions
The European Union is criticizing the U.S. decision to impose sanctions on countries that buy Iranian oil and warns that the move could damage an international effort to stop Iran developing nuclear weapons.
9:12AM ( 1 hour ago )
US move to end Iran exemptions sending oil prices higher
Global oil prices are climbing in the wake of the U.S. move to impose sanctions on countries that buy Iranian oil
9:08AM ( 1 hour ago )
Twitter says 1Q profit triples on ad demand, daily users up
Twitter says 1Q profit triples, user numbers post healthy growth
8:07AM ( 2 hours ago )
AP Business
World stocks mixed, oil soars on Iran sanctions fears
World stocks mixed, oil soars as Iran sanctions trigger supply worries
5:06AM ( 5 hours ago )
North Korea's Kim will go into Putin summit needing a win
As North Korean leader Kim Jong Un heads into his first summit with Russian President Vladimir Putin, he has a long wish list and a strong desire to mark a win after his failed Trump summit _ but will Putin oblige?
4:53AM ( 5 hours ago )
Asian stocks rise, oil soars on Iran sanctions worries
Asian stocks rise, oil soars as Iran sanctions trigger supply worries
2:46AM ( 7 hours ago )
AP Business - Economy
The Latest: Klobuchar still reluctant to 'Medicare for All'
Minnesota Sen. Amy Klobuchar is maintaining her reluctance to liberal Democrats' call for "Medicare for All."
7:36PM ( 14 hours ago )
Customers videotaped at spa in Kraft case sue authorities
Federal class-action lawsuit filed against Florida authorities alleging they unlawfully videotaped dozens who received lawful massages at a parlor where New England Patriots owner Robert Kraft allegedly paid for sex
4:48PM ( 17 hours ago )
Customers videotaped at Kraft-connected spa sue authorities
Federal class-action lawsuit filed against Florida authorities alleging they unlawfully videotaped dozens who received lawful massages at a parlor where New England Patriots owner Robert Kraft allegedly paid for sex
4:29PM ( 18 hours ago )
AP Business - Personal Finance
US mortgage rates increased this week with 30-year at 4.17%
US long-term mortgage rates increased this week, though they remain lower than a year ago in a positive sign for home sales
10:48AM ( 4 days ago )
World stocks rise on hopes for growth; focus on earnings
World shares are mostly up on upbeat economic data for China and Germany and as investors keep an eye on corporate earnings
6:49AM ( 1 week ago )
World shares advance on back of rally in China shares
World shares advance as China shares rally, reversing early losses
4:58AM ( 1 week ago )
AP Business - Real Estate
US stocks move broadly higher as earnings reports flow in
US stocks rise broadly as major companies issue a stream of solid earnings reports
10:29AM ( 6 minutes ago )
The Latest: Analysts: Iran sanctions bullish for oil prices
Energy analysts at Raymond James & Associates are warning that U.S. imposition of tougher Iranian oil sanctions is "unambiguously bullish" for the price of oil
10:11AM ( 24 minutes ago )
Flores says Biden's jokes about touching are 'disrespectful'
A woman who accuses former Vice President Joe Biden of touching her without permission says it's no laughing matter and is criticizing Biden for making jokes about it
10:05AM ( 31 minutes ago )
Putin, Kim to meet in Russia's Far East on Thursday
A Kremlin adviser says Russian President Vladimir Putin will meet with North Korean leader Kim Jong Un for a much-anticipated summit, putting an end to weeks of speculation about when and where it would take place
9:52AM ( 43 minutes ago )
Twitter says 1Q profit rises on ad demand, daily users up
Twitter says 1Q profit rises on strong ad demand, daily user numbers grow
9:46AM ( 50 minutes ago )