New Home Sales Decline Just 3.3%

New home sales fell 3.3% month-over-month in February, to an annualized pace of 440,000.

This was better than expectations for a 4.9% fall to an annualized pace of 445,000.

January’s number however saw a significant downward revision to reflect a 3.2% rise to an annualized pace of 455,000 units. This compares with an initial reading of a 9.6% mum rise to an annualized pace of 468,000.

The inventory of homes climbed to 5.2 months supply at the current sales pace. Meanwhile, the median sales price climbed to $US261,800, from $US260,800 the previous month.

Homebuilder confidence has also been weakening. Homebuilders cited the severe winter and difficulties in finding lots and labour for declining confidence.

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