As we have been discussing for about 3 quarters, the US housing market is on fire. COVID-19 spurred on the demand originally created by demographics. This trend was already going to occur anyway. Lower rates and the need to move out of cities accelerated the trend; home builders weren’t ready. This is too good of a market for homebuilders although commodities such as lumber have increased substantially making housing raw materials cost more. Please share this article - Go to very top of page, right hand side, for social media buttons. New home sales exploded in March. The yearly data is skewed because of the pandemic and the monthly data is skewed because of the bad weather in February. Specifically, new home sales were up from 846,000 to 1.021 million. The best comp might be to January in which new home sales were 1.010 million. It’s going to be interesting to see how strong the spring selling season gets in April and May. Some are saying the housing market actually needs higher rates because demand is so strong. It would be healthier if prices didn’t increase this quickly.