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US Existing Home Sales in February were 775K vs 870K expected and down from prior 923K. Sales -18.2% vs -5.7% expected to the lowest in 9 months. The Midwest sales fell 37.5% with extreme cold weather however all regions fell back so weather was not the only negative impact.

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Mortgage rates have risen from record low levels as the economy reopens from coronavirus-induced restrictions.

February 2021 US New Home Sales

After months of gains amid record-low interest rates and as people move away from the big cities as they have more flexible work arrangements due to the coronavirus pandemic we saw a sharp slow down. Much was to do with the arctic blast, but not all.

  • US February new home sales 775K vs 870K expected Prior 923K
  • Sales -18.2% vs -5.7% expected Prior +4.3%
  • Lowest reading in 9 months amid adverse weather conditions during the month.
  • New home sales plunged 37.5% to 85 thousand in the Midwest,
  • Fell 16.4% to 194 thousand in the West,
  • Fell 14.7% to 458 thousand in the South
  • Fell 11.6% in the Northeast.
  • The median sales price increased to $349,400 from $331,800 a year earlie
  • Homes for sale at the end of Feb 312K vs 304K prior
  • Median price $349.5K, up 5.3% y/y
  • Supply 4.8 months vs 3.8 months prior  

Existing home sales account for 90% of US transactions and are calculated on a contract close basis. New home sales account for the remaining 10% and are based on contract signings.

 United States New Home Sales

The big question is after the lockdown eases and the economy reopens how much damage has been done with the massive unemployment and wealth erosion.

Source:

From The TradersCommunity News Desk

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