New home sales reach highest number since September

Sales of new homes increased 8.8% in March
Buyers are struggling with a lack of homes in the resale market
High interest rates and prices are also holding back buyers

Steph Whiteside

Updated: Apr 23, 2024 / 04:56 PM CDT

For sale by owner sign is displayed outside home in Northbrook, Ill., Wednesday, Sept. 21, 2022. (AP Photo/Nam Y. Huh)

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(NewsNation) — Data for March shows sales of new homes reached a high not seen since September 2023, increasing 8.8% according to government data.

Sales of new construction, single-family homes hit an annual pace of 693,000 in March with the supply of new homes rising to 477,000.

That jump comes as buyers in the resale market struggle with a lack of available homes. The price of a new home also decreased to a median price of $430,700 in March.

While sales of new homes are up, would-be home buyers are still struggling with high interest rates and the high cost of housing, with buyers now needing to make roughly $115,000 a year to afford a home in the U.S.

In all major metropolitan areas in the U.S., renting is now cheaper than buying and Americans are still struggling with the impact of rising costs of necessities like groceries.

With inflation proving to be a stubborn issue, it’s unclear when the Federal Reserve might lower interest rates, making mortgages more affordable for buyers.