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s the White House announced new tariffs in early April, a curious phenomenon emerged: homebuyers seized on lower mortgage rates in March, propelling sales to a seasonally adjusted annual rate of 724,000 – the highest since September. This surge defied economic uncertainty and marked a significant shift towards smaller homes.
New home prices continued their downward trend, with the median sales price dipping 1.9% from February and 7.5% from last year's figure. This decline suggests builders are pivoting to more affordable options, as evidenced by the strong demand for homes priced under $300,000 and those in the $300,000-$399,000 range.
The South remained a driving force behind new home sales, accounting for roughly two-thirds of March's total. Meanwhile, the number of available new homes increased 7.9% year-over-year, providing buyers with more options – albeit temporarily, as rising building costs and price uncertainty may soon impact the market.
