New Home Sales Best Since 1963

New home sales jumped up in March at the fastest single-month rate since March 1963. The government report released on Friday said buyers gobbled up new houses ahead of the federal tax credit that is just about to expire.

New-home sales rose 26.9% to a seasonally adjusted annual rate of 411,000 in March, compared to a revised annual rate of 324,000 in February.

The surprise jump was significantly better than even the most optimistic professional forecasters had thought. The average economist surveyed said that March sales gains would only amount to an annual rate of 330,000.

The rate gain was the biggest in a month-over-month measure since a 31% gain 47 years ago in March 1963.

Gains in the South were especially pronounced. New home sales there were up 43.5%. The Northeast region also saw a massive 35.7% spike.