US new homes market continues to be on slight upward trend

In March, sales of new homes in the US declined 1.5%, as compared with expectation of a rise of 1.6%. The decline was mainly due to upward revisions to January and February’s data. However, the activity level was slightly below projection, noted Daiwa Capital Markets. Sales of new homes were in their latest range due to the net impact of changes.

It strengthened the sideways movement that advanced throughout 2015. The new homes market is not losing strength. It has a slight upward momentum, added Daiwa Capital Markets. A similar pattern is shown by existing home sales.

There were significant variations seen throughout regions. Last month, the Midwest region saw an improvement in the activity from February’s low-side reading; however, it did not surpass its recent range. Meanwhile, activity in the West region fell to the lowest level since mid-2014. Sales in the Northeast region continued to be in the mid-range, while activity in the South recorded a growth of 5%.

In the last month, the number of homes for sales grew 2.1%, remaining on a slight upward trend. In March, homes’ supply grew to 5.8 from February’s 5.6. The recent data continues to be in the latest range and is at ease by historical standards, said Daiwa Capital Markets.