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April 23, 2014

New-Home Sales Slow in February as Prices Rise

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New-Home Sales Slow in February as Prices Rise

New-home sales posted the largest drop in two years, falling 4.6 percent in February, the Commerce Department reported Tuesday. Housing experts say the bad weather may have had a big part in the dip, just as the new-home market had shown signs of picking up its pace during the last few months.

The Northeast saw sales drop nearly 14 percent — the largest amount in the U.S. — as it battered a major snowstorm in February, The Wall Street Journal reports. New-home sales also dropped in the South by 9.7 percent and by 2.1 percent in the West. The Midwest posted an increase of 13.7 percent. 

Despite some of the regional drops in sales, the new-home market is still showing signs of a rebound. Sales are up 12.3 percent year-over-year. Also, the median price of new homes in February increased 3 percent to $246,800. 

“Potential home buyers are entering the market now instead of later because they are afraid that prices will shoot up if they wait,” economists at IHS Global Insight wrote in a report.

Source: “Sales of new homes sink 4.6% in February,” The Wall Street Journal (March 26, 2013)

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