New Home Sales Hit Three-Month Low

Sales of new homes hit a three-month low in February, according to U.S. Census Bureau data.

The numbers: New home sales declined 2.0% in February, to a seasonally adjusted annual rate of 772,000 units. January’s sales pace was 788,000 units.

New homes sales were 11.4% of U.S. home sales in February, according to NAM Chief Economist Chad Moutray.
The median new home sales price settled at $400,600 in February, up 10.7% year-over-year from $362,000 one year ago.
New single-family home sales have fallen 6.2% over the past 12 months, down from 823,000 units in February 2021.

Where it’s happening: Sales strengthened in the Midwest and Northeast but were outweighed by weaknesses in the South and West.

The NAM’s take: “Overall, affordability issues, higher mortgage rates, supply chain problems and workforce shortages continued to challenge the housing market,” Moutray said.