Sales of new U.S. single-family homes soared in March, boosted by efforts of American families to get out of crowded and increasingly dangerous urban centers in favor of spacious and peaceful suburbs.
The Commerce Department said on Friday that new home sales surged 20.7 percent to a seasonally adjusted annual rate of 1.021 million units last month, the fastest pace of sales since 2006.
Economists polled by Econoday had forecast that new home sales would increase to a rate of 887,000 units in March, up from the 775,000 initially estimated for February.
Prior months were revised up sharply. February’s sales are now estimated at 846,000.
New home sales make up just 12 percent or so of the market for homes. But these sales carry a large economic impact because house building is labor-intensive and new homes have to be outfitted with appliances and furniture.
The months of supply decreased in March to 3.6 months from 4.4 months in February. That is close to the all-time low of 3.5 months hit in October.