March 26, 2007
New home sales slow in February
By Matthew L. Brown
Sales of newly constructed U.S. housing unexpectedly slowed again in February, falling 3.9 percent to a seasonally adjusted annual rate of 848,000, the lowest level since June 2000, according to the Commerce Department.
Sales were down 18.3 percent, compared with February 2006. Sales in January were revised lower to show a 15.8 percent drop to an 882,000 annual rate, compared with the 937,000 reported previously. Reported sales for December and November were also revised lower.
Inventories of unsold homes rose 1.5 percent to 546,000, representing an 8.1-month supply, the largest inventory in relation to sales since January 1991. The inventory is up 27 percent in the past 12 months. Inventories are probably understated, because they don't include homes thrown back on the market due to buyer cancellations. The number of completed but unsold homes rose to 179,000 from 177,000, up 43 percent from a year earlier. The median price of a new home was $250,000, down 0.3 percent from February 2006.
Sales were down 18.3 percent, compared with February 2006. Sales in January were revised lower to show a 15.8 percent drop to an 882,000 annual rate, compared with the 937,000 reported previously. Reported sales for December and November were also revised lower.
Inventories of unsold homes rose 1.5 percent to 546,000, representing an 8.1-month supply, the largest inventory in relation to sales since January 1991. The inventory is up 27 percent in the past 12 months. Inventories are probably understated, because they don't include homes thrown back on the market due to buyer cancellations. The number of completed but unsold homes rose to 179,000 from 177,000, up 43 percent from a year earlier. The median price of a new home was $250,000, down 0.3 percent from February 2006.
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