The Valley's new home market showed more promise last month as both sales and construction permits increased, according to the latest Phoenix Housing Market Letter by analyst RL Brown.

New home sales totaled 912 last month, up from 713 in February but still down from 1,890 in March 2008. Sales had fallen slightly from January to February.

Most of the sales were of inventory or speculative homes - those built without having a contracted buyer - helping to diminish the amount of inventory homes on the market, Brown said. Sales were up despite "really stiff" competition from bank-owned homes, he said.

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