New Home Sales Take a Major Hit..
New Home Sales in the US dropped dramatically in February to a low not seen in nine months. Severe cold weather in parts of the country contributed to this as it limited foot traffic to an already highly elevated market with restraining momentum.
Rates Declining Across Most Sectors...
Purchase of new single-family homes had the sharpest decline since July 2013, decreasing 18.2% to 775,000 annualised pace from a rate of 948,000 in the previous month. The reported pace was much lower than anticipated, as the expected forecast was 870,000 with sales dropping across all regions of the country.
All throughout the pandemic, the real estate industry has managed to maintain its high demand, but analysts believe the major decrease in sales is somewhat due to tightening inventory and rising prices that are keeping buyers away.
Reports also indicated that the number of properties that were sold and had not begun construction also fell to 211,000, which is the lowest it has been since October 2018. The median price for a house has risen 5.3% from a year ago, to $349,400. Sales of previously owned properties have also been affected, as they dropped below the forecast of 6.50 million to 6.22 million.
The US Dollar Index edged modestly higher after this report was released and was last seen gaining 0.52% on the day.