New home sales in March increased 19.3% in the South, 5.1% in the West and 5% in the Midwest. They dropped 24.3% in the Northeast, where sales activity during the first quarter was nevertheless 28.7% higher than during the same quarter of 2003, the strongest showing of any region.
The 372,000 inventory of new homes for sale in March represented a low 3.7-month supply at the current sales pace.
“The supply-demand balance in the new-home market is very, very healthy,” Seiders said. “Builders are not overextending production. Houses that have been actually completed account for only about one-quarter of the inventory, with units under construction or that have not yet been started making up the balance.”
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