New home sales rise
WASHINGTON — U.S. homebuyers in the West accounted for all of February’s increase in sales of new houses, possibly signaling uncertain growth prospects for the broader real estate market heading into the spring buying season.
The Commerce Department said Wednesday that new-home sales rose 2 percent last month to a seasonally adjusted annual rate of 512,000. All of the increase came from 38.5 percent surge in purchases in the West, which reversed a stiff 32.7 percent decline in January that had cut into overall sales.
The rebound likely reflected a government report that can be extremely volatile on a monthly basis, clouding some views of where the construction and housing markets are heading at the start of the most intense months for home sales.
“At this stage, it is unclear whether new-home sales are plateauing or are still in an uptrend,” said Joshua Shapiro, chief U.S. economist at MFR, a forecasting firm.
The U.S. housing market looks somewhat more tempered after strong growth in 2015. Sales in the opening two months of 2016 are running slightly below last year’s pace. Builder confidence has held steady despite a dip in sales expectations. Purchases of existing homes tumbled in February, with the prior two months of healthy sales likely straining already tight supplies.
Price pressures are mounting as the share of new homes being sold for less than $200,000 has declined so far this year, while the share of new-homes selling for more than $400,000 has risen.