By Vicki Needham - 04/23/10 02:15 PM EDT
Sales of new homes exceeded expectations in March, increasing 27 percent, reflecting the largest monthly increase in 47 years and rebounding from the previous month's record low.
Government incentives, better weather and stable prices helped new home sales rise to a seasonally adjusted annual pace of 411,000, the strongest month since July 2009, and 24 percent above sales a year ago, according to figures released Friday by the Commerce Department.
February's revised 324,000 was an all-time low, most likely caused by a month of bad weather around the country.
Combined with a 6.8 percent increase in March of existing home sales, according to data released Thursday, the housing market is beginning to experience rebound as the nation heads into the busy season for home sales.
The median sales price of new houses was $214,000 in March , up more than 4 percent from a year ago but down 3 percent in February.