In February, sales of newly built homes showed a positive rebound, rising 1.8% compared to January and 5.1% year-over-year, despite ongoing price declines. The median sales price decreased to $414,500, marking the lowest level for February since 2022. This price drop was attributed to a notable rise in sales of homes priced between $300,000 and $400,000. A conducive mortgage rate decline also bolstered the recovery, though new home supply reached its highest level since 2007, indicating a challenging balance between inventory and demand.
"This is a resumption of a trend that was bucked in January, in which smaller and more affordable new homes make up a sizable portion of inventory and sales," says Realtor.com® Senior Economist Joel Berner.
"Despite the national uptick in sales in February, the supply of new homes available for sale is now at its highest level since 2007, with a seasonally adjusted estimate of 500,000 units on the market."
"A slight decline in mortgage rates likely helped power the national rebound in sales, with average rates on 30-year fixed home loans dropping to 6.84% in February, down from 6.96% in January."
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