New home sales came out weaker than expected. This report does not paint a picture of a strengthening housing market to me. This report does not change my view that housing related stocks should be avoided. Sales of new single-family houses in March 2016 were 511,000, a 1.5% decrease from the February rate of 519,000.
New homes for sales continue to increase to 246,000 from 241,000, a 2.1% increase.
Months of supply also continue to increase to 5.8 months from 5.6 months in February.
The median sales price for new houses in March was $288,000 a 3.2% decrease from the February median price of $297,400.
Michael Grove, CFA