New home sales rise in February
Sales of new single‐family houses in February increased 4.9%, the U.S. Census Bureau and the Department of Housing and Urban Development reported.
Home sales rose to a seasonally adjusted annual rate of 667,000 from the revised January rate of 636,000. February sales are also 0.6% above the February 2018 estimate of 663.000.
The good news for potential buyers is the median sales price of new houses sold in February is down 3.6% to $315,300 compared to the same period a year ago.
The seasonally‐adjusted estimate of new houses for sale at the end of February was 340,000. This represents a supply of 6.1 months at the current sales rate.
This marked the third new home sales data release this month following the recent partial shutdown of the federal government.
The latest new home sales report also arrives just a day after the National Association of Realtors reported pending home sales stumbled last month.
By region, February new home sales soared 28.3% in the Midwest and 26.9% in the Northeast. In the South, sales were up 1.8% to their highest level since July 2007. Sales in the West were flat however.
“The recent decline in mortgage rates have helped boost sales activity as home buyers take advantage of these lower interest rates,” said Greg Ugalde, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Torrington, Conn.
According to the NAHB, more entry-level priced homes are needed to further drive new home sales.
“The new home sales data continue to show potential to grow sales at affordable price points that would be attractive for the entry-level buyer,” said NAHB Chief Economist Robert Dietz. “However, builders need to be mindful of housing costs as they try to meet this demand.”
The full February new home sales report is available here.
Home sales rose to a seasonally adjusted annual rate of 667,000 from the revised January rate of 636,000. February sales are also 0.6% above the February 2018 estimate of 663.000.
The good news for potential buyers is the median sales price of new houses sold in February is down 3.6% to $315,300 compared to the same period a year ago.
The seasonally‐adjusted estimate of new houses for sale at the end of February was 340,000. This represents a supply of 6.1 months at the current sales rate.
This marked the third new home sales data release this month following the recent partial shutdown of the federal government.
The latest new home sales report also arrives just a day after the National Association of Realtors reported pending home sales stumbled last month.
By region, February new home sales soared 28.3% in the Midwest and 26.9% in the Northeast. In the South, sales were up 1.8% to their highest level since July 2007. Sales in the West were flat however.
“The recent decline in mortgage rates have helped boost sales activity as home buyers take advantage of these lower interest rates,” said Greg Ugalde, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Torrington, Conn.
According to the NAHB, more entry-level priced homes are needed to further drive new home sales.
“The new home sales data continue to show potential to grow sales at affordable price points that would be attractive for the entry-level buyer,” said NAHB Chief Economist Robert Dietz. “However, builders need to be mindful of housing costs as they try to meet this demand.”
The full February new home sales report is available here.