US February new home sales
- Prior was 923K
- Sales -18.2% vs -5.7% expected
- Prior was +4.3%
- Homes for sale at the end of Feb 312K vs 304K prior
- Median price $349.5K, up 5.3% y/y
- Supply 4.8 months vs 3.8 months prior
The largest drop was 37.5% in the Midwest, which was hammered by cold weather. That said, all regions saw drops so it wasn’t only weather.
This is an interesting data point because it shows the US housing market isn’t quite as strong as believed but whether that’s a hiccup or a trend will have to wait and see. I imagine that rise in median prices is a bit of an illusion. Home builders cut down on amenities or square footage to keep prices in that range but lumber and commodity prices mean you’re getting much less for your buck, something that might be turning off home buyers.