ARLINGTON, Va.—New-home sales decreased for the third straight month in February, falling 0.6% from January. However, sales were up 0.5% from a year ago.
NAFCU Research Assistant Yun Cohen pointed to affordability as the main concern.
"The market also loosened somewhat during the month as the number of available new homes for sale rose to a nine-year high," Cohen said in a NAFCU Macro Data Flash report. "While the overall inventory and new construction of single-unit housing picked up recently, there is still an acute shortage of affordable houses."
According to data released by the Census Bureau, sales rose in two of the four regions in February: the Northeast increased 19.4%, followed by the South (+9%). Sales declined in the West (-17.6%) and Midwest (-3.7%).
"The median price of new single-family homes has increased year-over-year for 10 consecutive months," Cohen added. "Higher material and labor costs, new limits on tax deductions as well as rising mortgage rates pose additional headwinds for the market."
Based on current-month sales, there were 5.9 months of supply in February, up from 5.8 months in January. The number of unsold homes left on the market rose from 299,000 to 305,000 units, which represents a 16% increase from a year ago.
The median new-home price, non-seasonally adjusted, increased from $324,900 in January to $326,800 in February. The month's prices were 9.7% higher than a year ago.