New Home Sales Gain in February

But Downward Revisions Take Some Shine Out of Prior Strength

Source: Economics Group of Wells Fargo Bank, N.A. Summary Builders Continue to Find Success with Incentives
  • New home sales came in below consensus expectations at a 640K seasonally adjusted annual rate in February. January’s print was also significantly revised down from 670K to 633K, resulting in a 1.1% increase over the month.With the revisions considered, February marked the third consecutive month of growth. Builders continue to attract affordability-crunched buyers off the sidelines with price discounts, rate buy-downs and other incentives.The monthly uptick was driven by increases in the South and West, where new home sales grew 3.0% and 8.1%, respectively.