Last Update: 17-Apr-14 18:14 ET
New Home Sales
- New home sales declined 3.3% in February to 440,000 from a downwardly revised 455,000 (from 468,000) in January. The Briefing.com consensus expected the new home sales to fall to 445,000.
- Commentators will likely point out that the drop in sales was a result of extreme winter conditions. Yet, sales actually increased 36.7% in the frigid Midwest and fell 15.9% in the West.
- In actuality, sales are running a little ahead of the 12-month average. The drop in February was nothing more than normal volatility.
- Supply increased slightly to 5.2 months in February from 5.0 months in January.
- New home prices fell 1.2% y/y in February to $261,800. That was the first year-over-year decline since June 2012.
- Affordability concerns from higher mortgage rates and new home prices could stall further sales.
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