Gross sales of recent single-family houses fell in February, declining 2.0 p.c to 772,000 at a seasonally-adjusted annual charge from a 788,000 tempo in January. The February drop follows an 8.4 p.c decline in January and leaves gross sales down 6.2 p.c from the year-ago degree (see first chart). New house gross sales surged within the second half of 2020 however then slowed sharply within the first three quarters of 2021, hitting a low of 667,000 in October. Following the October low, gross sales posted two robust features in November and December however have reversed a few of these features in early 2022 (see first chart).
Gross sales of recent single-family houses had been down in two of the 4 areas of the nation in February. Gross sales within the South, the biggest by quantity, fell 1.7 p.c whereas gross sales within the West dropped 13.0 p.c. Gross sales within the Midwest elevated 6.3 p.c whereas gross sales within the Northeast, the smallest area by quantity, surged 59.3 p.c for the month. From a yr in the past, gross sales had been up 7.5 p.c within the Northeast however are off 19.2 p.c within the Midwest, down 9.3 p.c within the West, and off 3.0 p.c within the South.
The median gross sales worth of a brand new single-family house was $400,600 (see high of second chart), down sharply from $427,400 in January (not seasonally adjusted). The acquire from a yr in the past is 10.7 p.c versus a 14.5 p.c 12-month acquire in January and considerably decrease than the 20-plus p.c features within the second half of 2021 (see backside of second chart). On a 12-month common foundation, the median single-family house worth remains to be at a file excessive (see high of second chart).
The overall stock of recent single-family houses on the market rose 2.3 p.c to 407,000 in February, placing the months’ provide (stock instances 12 divided by the annual promoting charge) at 6.3, up 3.3 p.c from January and 40.0 p.c above the year-ago degree (see third chart). The months’ provide is at a comparatively excessive degree by historic comparability and is considerably larger than the months’ provide of present single-family houses on the market (see third chart). The comparatively excessive months’ provide and surge in mortgage charges could also be among the many causes for slowing features within the median house worth. The median time in the marketplace for a brand new house remained very low in February, coming in at 2.5 months versus 2.9 in January.