Sales of new homes grew 1.1% in February to a seasonally adjusted annual rate of 640,000, the U.S. Census Bureau reported.
Compared with February 2022, however, new home sales were down 19.0%.
“Builders continue to face challenges in terms of higher interest rates, elevated construction costs and access to critical materials like electrical transformers,” stated Alicia Huey, chairman of the National Association of Home Builders (NAHB). “Nonetheless, the lack of existing home inventory means demand for new homes will rise as interest rates decline over the coming quarters.”
Regionally, month-over-month new home sales fell 40.0% in the Northeast and 1.4% in the Midwest. New home sales increased 3.0% and 8.1% in the South and West, respectively.
The estimate of new houses for sale at the end of February was 436,000, a supply of 8.2 months at the current sales pace.
The median price of new homes sold in February was $438,200, with an average sales price of $498,700.
