New single-family home sales slide in February
New single-family home sales declined in February, in a month prior to the spread of the coronavirus crisis.
According to the latest Monthly New Residential Sales Report from the Department of Commerce, sales of new single-family homes in February declined 4.4% to a seasonally adjusted rate of 765,000.
The January 2020 rate was revised to 800,000 from a previously reported rate of 764,000.
The latest report is 14.3% above the February 2019 estimate of 669,000.
“Sales were on solid footing as we entered 2020, but this could be the high water mark for the next few months as consumers contend with the coronavirus outbreak,” said Dean Mon, chairman of the National Association of Home Builders (NAHB).
The median sales price of new houses sold in February 2020 was $345,900, rising slightly from the January median price of $348,200. The average sales price for February was $403,800, increasing from a rate of $402,300 in the prior month.
Here is how sales broke down by region:
“The February numbers reflect the strong state of the market before coronavirus concerns set in,” said NAHB Chief Economist Robert Dietz. “Given the momentum in the housing market at the start of the year, we do expect sales and construction activity to weaken during the third quarter; but housing’s potential suggests it will be a sector that will help lead the economy during the eventual rebound once virus mitigation is complete.”
The seasonally-adjusted estimate of new houses for sale at the end of February was 319,000. This represents a supply of 5.0 months at the current sales rate.
The full Monthly New Residential Sales Report for February can be accessed here.
According to the latest Monthly New Residential Sales Report from the Department of Commerce, sales of new single-family homes in February declined 4.4% to a seasonally adjusted rate of 765,000.
The January 2020 rate was revised to 800,000 from a previously reported rate of 764,000.
The latest report is 14.3% above the February 2019 estimate of 669,000.
“Sales were on solid footing as we entered 2020, but this could be the high water mark for the next few months as consumers contend with the coronavirus outbreak,” said Dean Mon, chairman of the National Association of Home Builders (NAHB).
The median sales price of new houses sold in February 2020 was $345,900, rising slightly from the January median price of $348,200. The average sales price for February was $403,800, increasing from a rate of $402,300 in the prior month.
Here is how sales broke down by region:
- Sales in the Northeast increased 38.9%
- Sales in the Midwest declined 7.3%
- Sales in the South increased 1%
- Sales in the West fell 17.2%
“The February numbers reflect the strong state of the market before coronavirus concerns set in,” said NAHB Chief Economist Robert Dietz. “Given the momentum in the housing market at the start of the year, we do expect sales and construction activity to weaken during the third quarter; but housing’s potential suggests it will be a sector that will help lead the economy during the eventual rebound once virus mitigation is complete.”
The seasonally-adjusted estimate of new houses for sale at the end of February was 319,000. This represents a supply of 5.0 months at the current sales rate.
The full Monthly New Residential Sales Report for February can be accessed here.