New single-family home sales rose 1.1% month over month in February to an annual rate of 640,000 homes, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development reported.
Meanwhile, the median price of a new home sold during the month jumped to $438,200 from $426,500 in January and $427,400 in February 2022.
Year over year, the pace of newly built home sales in February was down 19% from the year-ago rate of 790,000.
“New-home sales have picked up in recent months alongside lower rates and as builders continue to offer incentives,” First American Deputy Chief Economist Odeta Kushi said. “However, mortgage rates ticked up at the end of February, which may imply some weakness in upcoming home sales data. Nevertheless, when existing homes for sale are nearly non-existent, a new home at the right price may be an attractive option for potential home buyers.”
By region, the pace of new-home sales was mixed, with monthly declines of 40% and 1.4% in the Northeast and Midwest, respectively, and increases of 3% and 8.1% in the South and West, respectively.
Months’ supply of homes for sale fell 1.2% to 8.2 months from 8.3 months in January; on a year-over-year basis, inventory was up 36.7% from a 6-month supply in January 2022.