WASHINGTON, March 23 — New U.S. single-family homeþþsales jumped to a seven-month high in February, suggesting theþþhousing market recovery continued to gain momentum despite theþþchallenges of high prices and tight inventories.þþThe Commerce Department said on Thursday new home salesþþincreased 6.1 percent to a seasonally adjusted annual rate ofþþ592,000 units last month, the highest level since July 2016.þþJanuary's sales pace was revised up to 558,000 units fromþþthe previously reported 555,000 units. New home sales have nowþþrecouped a sharp drop suffered in December.þþEconomists polled by Reuters had forecast new home sales,þþwhich account for about 9.7 percent of overall home sales,þþgaining 0.7 percent to a rate of 565,000 units last month.þþNew home sales, which are derived from building permits, areþþvolatile on a month-to-month basis and subject to largeþþrevisions. Sales were up 12.8 percent compared to February 2016,þþshowing the housing market's resilience.þþSales last month were likely partially buoyed byþþunseasonably warm weather.þþMost economists see a limited impact on housing from higherþþmortgage rates because a tightening labor market is improvingþþemployment opportunities for young adults. The market for newþþhouses is benefiting from a shortage of properties for sale.þþA report on Wednesday showed a 3.7 percent drop in sales ofþþexisting homes in February amid tight inventories and risingþþhouse prices. The 30-year fixed mortgage rate is currentlyþþaround 4.30 percent.þþLast month, new single-family homes sales slumped 21.4þþpercent in the Northeast region. Sales surged 30.9 percent toþþtheir highest level since November 2007 in the Midwest andþþincreased 3.6 percent in the South.þþThey jumped 7.5 percent in the West. The inventory of newþþhomes on the market increased 1.5 percent to 266,000 units lastþþmonth, still less than half of what it was at its peak duringþþthe housing boom in 2006.þþAt February's sales pace it would take 5.4 months to clearþþthe supply of houses on the market, down from 5.6 months inþþJanuary.þþA six-month supply is viewed as a healthy balance betweenþþsupply and demand. The median price for a new home fell 4.9þþpercent to $296,200 in February from a year ago.þþ(Reporting by Lucia Mutikani; Editing by Paul Simao)
Source: NY Times
