Sales of newly built, single-family homes continued to expand, rising 6.1% in February to a seasonally adjusted annual rate of 592,000 units, according to newly released data from HUD and the Census Bureau.
“February’s increase in new home sales is consistent with builders’ growing confidence in the housing market,” said NAHB Chair Granger MacDonald. “Builders are encouraged by heightened consumer activity and by the expectation that regulatory costs will decline in the year ahead.”
“The uptick in mortgage interest rates is having a minimal effect on new home sales thus far,” said NAHB Chief Economist Robert Dietz. “Ongoing job creation, rising household formations and affordable home prices should keep the market on an upward trajectory in 2017.”
The inventory of new home sales for sale was 266,000 in February, which is a 5.4-month supply at the current sales pace. The median sales price of new houses sold was $296,200.
Regionally, new home sales increased 30.9% in the Midwest, 7.5% in the West and 3.6% in the South. Sales fell 21.4% in the Northeast.
For additional analysis, read this Eye on Housing blog post.