New home sales in the South jumped in February despite consumer concerns about the economy, according to the latest data from the Census Bureau.
- Sales of new single-family houses in the South were at a seasonally adjusted annual rate of 438,000 in February, up 6.6% from January and the second highest level in the last ten months.
- New home sales are up 19% when compared to the same time last year.
Almost Two Thirds: New home sales in the South now make up 64.7% of all the new home sales happening in the US.
Nationally, sales of new single-family houses rose to a seasonally adjusted annual rate of 676,000 in February, up 1.8% from January and the second highest level in the last five months. This was slightly below economist projections.
- Mixed Month: In the Midwest, new home sales skyrocketed over 20%, while home sales plummeted in the Northeast and the West, falling 21.4% and 13.6%, respectively.
Inventory: The jump in sales caused the month’s supply to fall slightly to 8.9 months despite for-sale inventory rising to 500,000 in February.
Bottom Line: Despite concerns about the spring buying season from some home builders, new home sales seem to be moving in a positive direction.
