The average sales prices for a new home sold in February was $511,000
The numbers: U.S. new-home sales decreased 2% to an annual rate of 772,000 in February, the government said Wednesday. That figure represents the number of homes that would be sold over a yearlong period of time if the same number of properties were bought each month based on the rate of sales in February.
Compared to a year earlier, sales were down more than 6%. Economists polled by MarketWatch expected new-home sales in February to drop to an annual rate of 805,000.
What happened: The supply of new homes for sale rose between January and February to a 6.3-month supply of units. In January, new home inventories were already at the highest level since 2008, according to Rubeela Farooqi, chief U.S. economist at High Frequency Economics.On a regional basis, new home sales varied significantly. The Northeast recorded a roughly 59% uptick in sales, while the figure for the West declined by 13%.
The average sales prices for a new home sold in February was $511,000, while the median price was $400,600.
The big picture: Home builders have maintained a steady pace of construction, which would likely be faster were it not for the impact of supply-chain headaches and a tight labor market. Data on February housing starts earlier this month signaled that builders were continuing to ramp up home-building activity.
The U.S. is in the midst of a major housing shortage, which should continue to provide a strong foundation for home sales even if rising mortgage rates cut into demand. The growing build-to-rent market also could provide leeway for construction companies to maintain their current pace, even if the broader housing market slows slightly.
