After reaching the biggest monthly gain in 20 years in January, new-home sales fell to a seasonally adjusted rate of 411,000 in February, according to the U.S. Department of Commerce. This marks a 4.6 percent drop from January's rate of 431,000, but it is 12.3 percent above February 2012.
Even with the drop, February's rate is still 30,000 above December 2012, and the second highest monthly total since the federal homebuyer tax credit expired in 2010.
"The February decline is a readjustment to the unusually high numbers that we saw in January, and we are still in line with our forecast for 2013," said NAHB Chief Economist David Crowe in a statement. "This is the kind of modest but steady growth we are expecting to see throughout the year as the economy and job market continue to improve, but constraints on borrower credit, higher building material prices and a limited supply of labor and buildable lots hold back a more robust recovery."
The median home price for new houses sold in February was $246,800, while the average was $313,700. The estimate of new houses on the market at the end of February was 152,000, a 4.4-month supply at the current rate.
