The U.S. Department of Commerce and the Department of Housing and Urban Development reported the increase in March. Its annual rate of 411,000 new homes sold outpaced February's 324,000, and also represented a 23.8 percent climb above March 2009.
Like most recent improvements in the housing sector, the increase in sales seen in March was attributed, at least in part, to a tax credit from the federal government. With it, consumers could get as much as $8,000 if they were purchasing their first house, or up to $6,500 if they were repeat buyers.
David Crowe, chief economist for the National Association of Home Builders, said he expects sales to continue to improve until the tax credit expires on April 30, while the spring and summer see volumes level out.
"Following that, the housing momentum will be carried forward by low interest rates, pent up household formations, excellent affordability conditions and a budding employment growth," Crowe said.
