In January, sales of new homes exceeded expectations by rising 7.5 percent to 670,000 units, marking the highest level since March 2022. However, it turns out that this figure was not accurate, as it has since been revised to 633,000 units. Nevertheless, this revised number is still notably higher than what analysts had predicted. As a result, the seasonally adjusted annual sales rate for February came in at 640,000 units, reflecting a modest 1.1 percent monthly increase. This is significantly lower than the 790,000-unit rate seen in February 2022, representing a decline of 19 percent.

There was no surprise in the February figures. Even before the revision of January’s data, analysts were anticipating a decline. Econoday’s poll of experts had a consensus estimate of 645,000, while Trading Economics predicted 650,000.

In February, the number of homes sold on a non-adjusted basis was 59,000, which is higher than the 55,000 sold in January. However, the year-to-date figures show a decline, with a total of 114,000 units sold compared to 141,000 during the same period last year.

As of the end of February, approximately 436,000 new homes were available for purchase, which is equivalent to an estimated 8.2-month supply based on the current sales pace. Out of these, around 75,000 homes are ready for immediate occupancy.

In the previous month, the median sales price for a home sold was $438,000, while the average price was $498,700. This marks an increase compared to the prices in the same period of the previous year, which were $427,400 and $522,200 for median and average prices, respectively.

Compared to January, sales in the Northeast region fell by 40.0 percent, and were down 55.3 percent from the same period last year. In the Midwest, sales decreased by 1.4 percent on a monthly basis, and declined by 20.2 percent year-over-year. However, in the South and West, sales increased in February, rising by 3.0 percent and 8.1 percent, respectively. Nonetheless, despite these monthly gains, sales in both regions were lower compared to the same time last year, with a year-over-year decline of 33.2 percent in the South and 10.1 percent in the West.