MetroIntelligence Economic Update by P. DUFFY
New home sales rebound 9.6 percent in March, still down 3.4 percent year-on-year
Sales of new single‐family houses in March 2023 were at a seasonally adjusted annual rate of 683,000, up 9.6% from February but down 3.4% year-on-year. The median sales price of new houses sold in March 2023 was $449,800, up 3.8% from February and 3.2% year-on-year. The average sales price was $562,400, up 12.1% from February and 9.9% year-on-year. The seasonally‐adjusted estimate of new houses for sale at the end of March was 432,000, representing a supply of 7.6 months at the current sales rate. This compares with 8.4 months in February and 7.0 months in March 2022.
Case-Shiller Index sees first monthly gain in eight months but still down 2.0 percent year-on-year
The National Case-Shiller Composite Index, which had declined for seven consecutive months, rose a modest 0.2% in February, and now stands 4.9% below its June 2022 peak. The annual gain fell to 2.0, down from 3.7% in the previous month. February’s results were most interesting because of their stark regional differences. It’s unsurprising that the Southeast (+7.8%) remains the country’s strongest region, while the West (-4.2%) continues as the weakest.
Pending home sales fall for first time since November, but rise in the South
Pending home sales decreased in March for the first time since November 2022, falling 5.2%. Year-over-year, pending transactions dropped by 23.2%. The Northeast PHSI fell 8.1% from last month to 66.6, a decline of 24.3% from March 2022. The Midwest index dropped 10.7% to 75.7 in March, down 21.5% from one year ago. The South PHSI improved 0.2% to 99.6 in March, falling 19.8% from the prior year. The West index decreased 8.0% in March to 59.4, reducing 32.2% from March 2022.