- Trulia
Sales of newly built single-family homes recovered modestly in February as a rise in the West offset steep declines in other regions, suggesting the housing sector has been recovering gradually amid a limited property supply on the market. The Commerce Department reported home sales increased 2.0% to a seasonally adjusted annual rate of 512,000 units. Moreover, January's figure was revised up to 502,000 units from the previously reported 494,000 units. New single-family home sales were supported by a sturdy 38,5% advance in the West last month, which reversed January's 32.7% plunge. However, excluding the West, home sales declined 8.1%. New home sales account for about 9.2% of the housing market. The median price of a new home stood at $301,400 last month, up 2.6% from a year earlier. Other signs indicate slow gains in the housing market. Sales of existing homes, roughly 90% of all home purchases, plunged 7.1% in February from January, the National Association of Realtors reported this week, but they rose 2.2% from the prior year.
With the improving labour market boosting household formation and mortgage rates still low by historical standards, housing fundamentals remain strong. The sector is expected to continue to contribute to economic growth this year.
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