New-home sales increased in February

Sales of newly built, single-family homes rose 2% in February from an upwardly revised January reading to a seasonally adjusted annual rate of 512,000 units, according to data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.

“While builders contend with industry headwinds such as labor shortages, relatively low mortgage interest rates and solid job growth should keep the housing market moving ahead as we enter the spring buying season,” said NAHB chief economist Robert Dietz.

The inventory of new homes for sale was 240,000 in February, which is a 5.6-month supply at the current sales pace. The median sales price of new houses sold in February was $301,400.

Regionally, new home sales increased 38.5% in the West, while sales dropped 4.1% in the South, 17.9% in the Midwest and 24.2% in the Northeast.

“The February bounce back in sales is in line with our builders’ reports that the housing market continues to recover at a slow but steady pace,” said Ed Brady, chairman of the National Association of Home Builders (NAHB) and home builder and developer from Bloomington, Illinois.