New Home Sales Numbers

From the Desk of Lou Brien:

1. New Home Sales surged in March, up 26.9% from the month before to an annualized rate of 411k, the highest level since last July. Sales were expected to be 325k. The annualized rate was up 87k from February, that is the biggest monthly increase since April 1963. February had originally been reported as a record low 308k, but this was revised up to 324k.
2. All regions increased their annualized sales rate; Northeast was up 10k on the month to 38k, the Midwest added 2k to 49k, the West was up 5k to 93k and the South increased 70k to 231k, maybe indicative of the February weather on the east coast, that saw record snowfall in the mid-Atlantic states, shifted the buying by one month. Also the home buyer credit program is on the clock, it expires at the end of April and this was probably an important factor.
3. Because of the jump in the annualized sales rate the supply of homes for sale fell by almost two months to 6.7 months, the lowest level since December 2006.
4. The median price of a home fell to $214,000 in March from $221,600 in February, but prices are up 4.3% from year ago levels.