Highlights
New home sales in February couldn't match the strong pace of January, coming in at an annual rate of 440,000 vs a revised 455,000 in January. But the slowing helped give supply a boost, to 5.2 months at February's sales pace vs 5.0 months in January. Supply has been thin in the housing market which has been a major factor holding down sales. Total new homes on the market increased slightly in the month and, at 189,000, are at their highest level since December 2010.
High prices have also been holding down sales, though there's signs that prices are moderating. The median price for new homes did rise 0.4 percent in February to $261,800 but the year-on-year rate, at minus 1.2 percent, is right in line with the year-on-year rate for sales, at minus 1.1 percent.
Regional data in this report are dominated by the South which far exceeds all other regions combined. Sales in the South slipped 1.5 percent in the month vs a 1.1 percent decline for total sales.
This report did not exceed expectations but is still positive, especially when taking January and February together. The housing market may begin to pick up steam as the weather warms.
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