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New home sales surged 20.7% in March to 1.02 million

Last Updated Apr 23, 2021 at 8:30 am MDT

A "for sale" sign stands along side a housing lot in Mount Prospect, Ill., Friday, April 2, 2021. U.S. home prices increased at the fastest pace in seven years in January as the pandemic has fueled demand for single-family houses even as the supply for such homes shrinks. (AP Photo/Nam Y. Huh)

WASHINGTON — Sales of new homes surged 20.7% in March, rebounding from the previous month when severe winter storms wreaked havoc in many parts of the country.

Sales climbed to a seasonally adjusted annual rate of 1.02 million last month after a 16.2% tumble in February, the Commerce Department reported Friday.

The median sales price of a new home sold in March was $330,800, up only 0.8% from the median sales price a year ago.

The big jump in new home sales stood in contrast to sales of existing homes, which fell for a second consecutive month in March, a drop that was blamed on a lack of supply which has pushed exiting home prices to new highs.

Martin Crutsinger, The Associated Press