Yesterday, the U.S. Census Department released its monthly New Residential Home Sales Report for March that showed an improvement, with sales climbing 1.5% from February. They rose 18.5% above the level seen in March 2012, but still remained at a historically low level of 417,000 SAAR units.
It's important to recognize that the inventory of new homes appears to be mounting as unsold units totaled 153,000. However, that's still near the lowest level seen in in at least 47 years, while the median number of months for sale went flat at 5.0.
The monthly supply went flat at 4.4 months, while the median selling price increased 3.0% and the average selling price declined 1.3% from the year-ago level. The following chart shows the extent of sales decline to date.