The National Association of Homebuilders (NAHB) said today that sales of new construction, single-family homes increased 6.1% in February to a seasonally adjusted annual rate of 592,000 units.
There were 266,000 new homes available for sale in February, which is a 5.4-month supply at the current sales pace. The average sales price of new homes sold is currently $296,200.
The Midwest saw the biggest gains in new home sales with an increase of 30.9%, followed by the West with 7.5% and 3.6% in the South. Sales fell 21.4 percent in the Northeast.
Granger MacDonald, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Kerrville, Texas had issued this statement, “February’s increase in new home sales is consistent with builders’ growing confidence in the housing market. Builders are encouraged by heightened consumer activity and by the expectation that regulatory costs will decline in the year ahead.”
“The uptick in mortgage interest rates is having a minimal effect on new home sales thus far,” said NAHB Chief Economist Robert Dietz. “Ongoing job creation, rising household formations and affordable home prices should keep the market on an upward trajectory in 2017.”
The NAHB report is based on the most recent data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.