US new home sales unexpectedly fall in February
SALES of new US single-family homes unexpectedly fell in February, but data for the prior month was revised higher, pointing to underlying strength as a shortage of previously owned houses on the market persists.
New home sales slipped 0.3 per cent to a seasonally adjusted annual rate of 662,000 units last month, the Commerce Department’s Census Bureau said on Monday (Mar 25). The sales pace for January was revised up to 664,000 units from the previously reported 661,000 units.
Economists polled by Reuters had forecast new home sales, which account for more than 10 per cent of US home sales, rising to a rate of 675,000 units.
New home sales are counted at the signing of a contract, making them a leading indicator of the housing market. They, however, can be volatile on a month-to-month basis. Sales advanced 5.9 per cent on a year-on-year basis in February.
The new homes market has defied 525 basis points worth of interest rate hikes from the Federal Reserve since March 2022, bolstered by a dearth of previously owned houses on the market.
Builders are ramping up construction, while offering price cuts and other incentives as well as reducing floor size to make housing more affordable. The government reported last week that housing completions hit their highest level in 17 years in February. More new home supply is in the pipeline. REUTERS
A NEWSLETTER FOR YOU
Property Insights
Get an exclusive analysis of real estate and property news in Singapore and beyond.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Property
Canadian homes for sale climb with second-biggest jump on record
US homebuilder sentiment tumbles as rates slow buyer traffic
Eurozone home loan stress ‘manageable’ despite high rates, says ECB
Sandpiper Hotel in Little India back on the market for S$33 million
China mulls government purchases of unsold homes to ease glut
Europe’s property slump easing as rents increase, report says