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Housing Defies Expectations – New Home Sales in South Still Ramping UP!

The nation’s housing market continued to defy expectations in March amid low inventory and rising mortgage rates, the Census Bureau and Department of Housing and Urban Development reported on Tuesday.

Permits for new construction rose 0.4% to an annual rate of 1.873 million, up from February’s revised 1.865 million. Starts on new homes were 0.3% above February’s revised 1.79 million, at 1.793 million.

Despite the headwinds, a massive housing shortage, coupled with demographic trends favoring single-family homes, sets the stage for builders to ramp up construction,” Kushi said. “While builder sentiment may moderate from recent highs due to ongoing supply-side and affordability challenges, it remains positive.”

While the data reflects national trends, some regions continue to do well.

“Builders in the Northeast and South saw conditions improve during the month, and the six month outlook for new single-family home sales increased,” said George Ratiu, senior economist and manager of economic research at Realtor.com. Read more on USNews.com

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