ARLINGTON, Va.—New home sales in February fell 4.4% to 765,000 from January's revised rate of 800,000 annualized units. NAFCU Chief Economist and Vice President of Research Curt Long noted growth in sales in all four regions compared to a year ago.
“New home sales slowed in February after a strong upward revision of January numbers,” said Long. “This report shows the strength of the market before coronavirus-related shutdowns began.
“NAFCU expects new home sales to drop significantly in the next several months before a modest rebound later in the year due to attractive mortgage rates and the release of pent-up demand,” Long concluded.
Sales were 14.3% higher compared to February 2019.
The median new home price, non-seasonally adjusted, increased from $325,300 in January to $345,900 in February. Of note, this month’s prices are up 7.8% from a year ago, Long said.
Sales rose in two of the four regions in February, with the Northeast growing 38.9% and the South gaining 1%. Sales in the Midwest and West region dropped 7.3% and 17.2%, respectively.
Based on current sales, there were five months of supply in February, which was up from 4.8 in January. The number of unsold homes left on the market was down slightly from January at 319,000 units, representing a 6.7% reduction from year-ago inventory levels.