New home sales increased in February, rising to a seasonally adjusted pace of 539,000 homes sold this year. That number is up 7.8% from 500,000 in January.
Total home sales rose by 1.2% in February after a slow January start. Annually adjusted home sales for February 2015 are 4.7% higher compared to February 2014. Rising total home sale numbers reflect more movement in the market—a positive sign for the overall growth of the housing sector.
Home inventory dropped to 210,000, or a 4.7 month supply, after it had already dropped in January. Low home inventory continues to burden low-income buyers as home values rise. Lack of rentals across the nation have also made the demand for homes on the market even higher. However, low inventory will lead to more new home sales in the future as more builders will be willing to build, knowing there may be a buyer out there waiting for them.
Hart Real Estate Solutions