New-Home Sales Decline in February from Strong January PaceMarch 27th, 2013 by DWM Magazine
Sales of newly built, single-family homes declined 4.6 percent to a seasonally adjusted annual rate of 411,000 units in February from a strong pace of 431,000 units in the previous month, according to newly released figures from HUD and the U.S. Census Department. Despite the slight decline, this is the second highest monthly total since April 2010 when the federal home buyer tax credit expired.
“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,” says NAHB chief economist David Crowe. “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.”
Regionally, new-home sales activity was mixed in February, with the Midwest posting a gain of 13.7 percent, while the Northeast, South and West showed declines of 13.3 percent, 9.7 percent and 2.1, respectively.
The inventory of new homes increased to 152,000 units in February, which is a 4.4-month supply at the current sales pace. Although this is an increase over the previous month, it is still well below normal inventory trends.