Sales of new houses rise more than a quarter

New-HomesAs per the latest Federal data, the sales of newly built houses rose up by 27 per cent for the month of March. And the gain was registered in all the four regions of America.

The good news is that this is the highest gain recorded by the segment in the last five decades.

The reason for this rise is the lucrative tax benefits along with mild weather.

Figures given by the Commerce Department said that the new home sales to an annual rate of 411,000. The figure was seasonally adjusted and outperformed the expert expectations by miles.

Economists are calling it the very big push that was needed by the economy. In March 2009, sales went up by 24 per cent which is below the peak level of 2005.

But what is worrying is the fact that experts are not sure as to how long this momentum can be maintained. Some also view this as the last minute investment patch ups by the investors to be able to meet their tax-credit deadline.

The gains in sales were highest in South region with 43.5 per cent followed by others.