(MENAFN- The Peninsula) London: Purchases of new US homes unexpectedly increased in March to an eight-month high, indicating housing demand remained strong at the start of the spring buying season, Commerce Department data showed.
Single-family home sales increased 5.8 percent to a 621,000 annualised pace (median forecast called for a 584,000 rate). The median sale price of a new house rose 1.2 percent from March 2016 to $315,100. Supply of homes shrank to 5.2 months from 5.4 months; there were 268,000 new houses on the market at the end of March.
Steady job growth and improving wages are continuing to drive demand, building on last year's new-home sales that were the strongest since 2007. While mortgage costs remain above pre-election levels, they're becoming less of a curb on the market, with the average 30-year fixed rate falling last week to the lowest since November. Still, lean inventories and rising prices may restrain any gains.
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