Data released by the U.S. Census Bureau on Monday showed that new home sales edged down 0.3% from January to February to a seasonally adjusted annual rate of 662,000 units.
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Sales of new single-family homes unexpectedly fell slightly from January levels, marking the first month-on-month decline in three months.
U.S. data showed that new home sales fell 0.3% from January to February to a seasonally adjusted annual rate of 662,000 units Census Bureau — 5.9% higher than February 2023 sales. The sequential decline was also due to last month’s data being revised to a higher ratio.
Despite a slight dip in January and February, typically slow months for the real estate market, new construction homes remain increasingly popular with homebuyers, who find themselves facing extremely low inventory as homeowners choose to stay put. Not dealing with 20-year high mortgage rates.Builders, in turn, are stepping up construction Offer more offers Move inventory.
Census Bureau
“New construction continues to account for a huge share of the housing inventory,” Lisa Sturtevant, chief economist at Bright MLS, said in a statement. “Homebuilders benefit as existing homeowners are locked into lower mortgage rates. Shallow, more potential homebuyers are looking for new homes.”
Builders are also starting to offer more services to homebuyers on a limited budget. According to Nerdwallet, half of the new homes sold in February were priced under $400,000, 42% more than what was sold at that price level a year ago.
The decline in new home signings in February was also due to higher mortgage rates, which could dampen the spring housing market.
“Mortgage rates rose in February, and rising rates are hurting new home sales,” NerdWallet housing expert Holden Lewis said in a statement.
The median sales price of a new home in February was $400,500, while the average sales price was $485,000. The number of new homes for sale at the end of the month was estimated at a seasonally adjusted 463,000, according to the Census Bureau, which represents a supply of 8.4 months at the current sales pace.
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