New Home Sales Slip for 4th Consecutive Month
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Sales of new homes declined for a fourth consecutive month in February, pushing the closely-watched housing indicator to a record low.
The Commerce Department said on Wednesday that sales of new single-family homes fell 2.2 percent to a annual rate of 308,000 units last month, down from 315,000 units in January. Economists had been expecting a 1.9% rise to 315,000 units.
The fall in sales of new homes came the day after a report from the National Association of Realtors that the sales of existing homes dropped for a third straight month, as the inventory of houses on the market rose.
The government-backed stimulus efforts aimed at spurring the U.S. housing market have done little to influence homebuyers in recent months, as the tax credit that bolstered sales at the second half of 2009 is set to expire at the end of April.
In addition, the Federal Reserve plans to stop purchases of mortgage-related securities next week. This program has led to the record low cost of home loans put in place to stimulate the housing market.
The number of new homes for sale on the market increased slightly to 236,000, which, at the current rate of sale, would last more than 9 months.
The median price for new homes climbed on both on a yearly and monthly basis to $220,500 last month, up 5 percent from the same period last month and up 6 percent from January.
February new home sales fell by 20% in the Northeast, by 18% in the Midwest and by 5% in the South, while increasing 21 percent in the West. The West also saw significant growth in the sales of existing homes.
The Commerce Department said on Wednesday that sales of new single-family homes fell 2.2 percent to a annual rate of 308,000 units last month, down from 315,000 units in January. Economists had been expecting a 1.9% rise to 315,000 units.
The fall in sales of new homes came the day after a report from the National Association of Realtors that the sales of existing homes dropped for a third straight month, as the inventory of houses on the market rose.
The government-backed stimulus efforts aimed at spurring the U.S. housing market have done little to influence homebuyers in recent months, as the tax credit that bolstered sales at the second half of 2009 is set to expire at the end of April.
In addition, the Federal Reserve plans to stop purchases of mortgage-related securities next week. This program has led to the record low cost of home loans put in place to stimulate the housing market.
The number of new homes for sale on the market increased slightly to 236,000, which, at the current rate of sale, would last more than 9 months.
The median price for new homes climbed on both on a yearly and monthly basis to $220,500 last month, up 5 percent from the same period last month and up 6 percent from January.
February new home sales fell by 20% in the Northeast, by 18% in the Midwest and by 5% in the South, while increasing 21 percent in the West. The West also saw significant growth in the sales of existing homes.
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