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Data released today in the US showed that New Home Sales rose by 4.5% in March, above expectations. According to analysts at Wells Fargo, lower mortgage rates and a shift toward the construction of more modestly priced homes are boosting sales.

Key Quotes:  

“Easing home prices and lower mortgage rates spurred a 4.5% jump in new home sales during March. While existing sales were softer during the month, the housing market appears to be improving as the spring selling season gets underway.”

“Sales at lower price points continue to strengthen. During March, an estimated 50% of sales were priced below $300,000, up from around 43% of sales averaged during 2018.”

“Builder discounting and a shift in focus toward building lower priced homes in more affordable areas continue to keep price increases in check.”