Friday, March 23, 2012

New Home Sales Fell in February

New home sales continued to fall in February to a seasonally adjusted 313,000 units per year pace, down from 318,000 annual units in January. This is the second month that new home sales have declined since peaking at 336,000 in December.

The South led the decline, with sales falling 7.2% to an annual pace of 168,000 units. This weighs heavily on the index and currently comprises 50% of new homes sold in the US. The Midwest was the only other region to decline, seeing a modest fall of 2.4%. The Northeast and the West both gained 14.3% and 8.0% respectively, but, due to their small market share were unable to offset the fall seen in the south.

Months’ supply on the market edged up in February to 5.8 months due to both slowing sales as well as an increase in supply that has begun to build over recent months. The median new home price continued to appreciate in February, rising 6.8% to $234,700.

Read the report.

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