US New Home Sales, Median Price Drop as Supplies Grow

New home sales and the median price in the United States fell to a four-month low in February, as supplies posted a steep increase during the month.

Source: US Census Bureau

XHB is down 2.45%, and ITB down 2.47%.

New houses sold stood at 772,000 in February, down from 788,000 in January and 823,000 in the same month of 2021. This is the lowest reading in four months since October 2021’s 667,000.

The median sales price fell to $400,600 from $427,400 in January, but higher than the $362,000 the same month last year. This is the lowest in two months since the median sales price was $399,100 in December 2021.

The latest supply was equivalent to 6.3 months based on the current sales pace, higher than the 6.1 in January and 4.5 in February 2021. This is the highest since October 2021’s 7.0 months.

New houses for sale climbed to 407,000, up 2.3% from 398,000 in January and 33.0% higher than the 306,000 units for sale in February 2021.