New home sales increased by 5.1% in February compared to 2024
The supply of new construction homes available for sale totaled 500,000 units, which would be 8.9 months' worth of inventory at the current sales pace.
Laborers build a home in Fairfax, VA.
Sales of newly constructed homes increased in February. A Census Bureau report detailed that purchases of newly built single-family homes rose 1.8 percent, reaching a seasonally adjusted annual rate of 676,000.
The figure is a 5.1 % increase over 2024. In addition, the supply of new homes available for sale totaled 500,000 units, representing 8.9 months worth of stock at the current sales pace.
The numbers are known at a time when the average 30-year mortgage rate declined for the sixth consecutive week to the lowest level since early December. It stood at 6.67% according to data released at the beginning of March.
Following the release of the data, mortgage applications increased during the first week of the month, rising by 31% compared to the previous year.
Meanwhile, Daryl Fairweather, chief economist at Redfin, explained that it's a good time to enter the housing market:
"It’s a buyer’s market, meaning buyers should be able to negotiate lower prices and better terms. That’s especially true in markets with the steepest inventory increases, like in Texas and Florida," Fairweather highlighted.
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