New home sales slip 0.3 in February; up 5.9 yearonyear
Median new home price drops 7.6 from year ago

WASHINGTON, March 25 Reuters Sales of new U.S. singlefamily homes unexpectedly fell in February after mortgage rates increased during the month, but the underlying trend remained strong amid a chronic shortage of previously owned houses on the market.

The report from the Commerce Department on Monday also showed the median new house price last month was the lowest in more than 212 years, while supply was the highest since November 2022. Builders are ramping up construction, while offering price cuts and other incentives as well as reducing floor size to make housing more affordable.

Housing activity is stabilizing as homebuilders appear to be building cheaper, and therefore, likely smaller homes, said Conrad DeQuadros, senior economic advisor at Brean Capital. Sales have been relatively stable at December39;s level over the last two months and prices have been falling at midsingledigit rates on a yearoveryear basis.

New home sales slipped 0.3 to a seasonally adjusted annual rate of 662,000 units last month, the Commerce Department39;s Census Bureau said. The sales pace for January was revised up to 664,000 units from the previously reported 661,000 units.

Economists polled by Reuters had forecast new home sales, which account for 13.1 of U.S. home sales, would rise to a rate of 675,000 units. New home sales are counted at the signing of a contract, making them a…