The numbers: Sales of newly-constructed homes in the U.S. dipped 4.4% on a monthly basis in February to a seasonally-adjusted annual rate of 765,000, the government reported Tuesday.
January’s upwardly-revised figure represented the highest pace of new-home sales since June 2007, marking a cycle high for the U.S. real-estate industry.
Compared with February 2019, new-home sales increased 14.3%, and February itself was the second-highest month for new-home sales since 2007. Notably, the new-home sales report is prone to major revisions because of the small sample size used to produce it.
What happened: The median sales price of new homes sold in January was $345,900. The inventory of new homes for sale dropped to 319,000, representing a 5.0 months’ supply and surpassing January as the lowest supply of new homes on the market since 2017.
Sales volumes varied significantly from region to region. The West saw a 17% decline in