U.S. new home sales rebound exceeds expectations in March

FILE PHOTO: A newly constructed single family home is shown as sold in Encinitas, California

WASHINGTON (Reuters) – Sales of new U.S. single-family homes rebounded more than expected in March, likely boosted by an acute shortage of previously owned houses on the market.

The Commerce Department said on Friday that new home sales surged 20.7% to a seasonally adjusted annual rate of 1.021 million units last month. Economists polled by Reuters had forecast new home sales, which account for a small share of U.S. home sales, increasing to a rate of 886,000 units in March.

(Reporting by Lucia Mutikani; Editing by Chizu Nomiyama)