New Home Sales Decline 15.4%
New U.S. home sales free fall by about 15.4% in March according to the monthly report from the U.S. Census Bureau and Department of Housing and Urban Development. The largest decline since July 2013 is expected to continue at least in the short term as COVID-19 continues to damage real estate markets around the world.
The Census Bureau collects new home sales based upon the following definition: “A sale of the new house occurs with the signing of a sales contract or the acceptance of a deposit.” The house can be in any stage of construction: not yet started, under construction, or already completed. Typically about 25% of the houses are sold at the time of completion. The remaining 75% are evenly split between those not yet started and those under construction.