New Home Sales up 26.9%

New Home sales posted an impressive increase of 26.9% in March over February. The increase represents 411,000 units on an annualized basis which is way ahead of Analysts estimates of 330,000 units. Inventory of New Homes fell from a 9 months supply in February to a 6.7 month supply in March. Inventories are currently at levels not seen since the 1970's.

February's 308,000 units was revised upward to 324,000 units sold which shows an upward trend better than anticipated.

All this is good news for the economy. However, for a sustained economic recovery to go mainstream, new home sales need to continue to improve and unemployment levels need to drop.

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