Ads Google

US new home sales will play key role in post-coronavirus growth

by Steve Randall on 25 Mar 2020

Sales of newly-built US homes were strong at the start of the year with February data confirming the pre-coronavirus demand.

Data from the HUD and US Census Bureau reveal a 14.3% gain year-over-year with a seasonally adjusted annual rate of 765,000 units. The Northeast led the gains.

Although February’s total was down 4.4% from January, that month’s figures were upwardly-revised. The two months reflect the highest monthly sales pace since July 2007.

The National Association of Home Builders is expecting the market to rebound after a coronavirus-related impact.

“The February numbers reflect the strong state of the market before coronavirus concerns set in,” said NAHB Chief Economist Robert Dietz. “Given the momentum in the housing market at the start of the year, we do expect sales and construction activity to weaken during the third quarter; but housing’s potential suggests it will be a sector that will help lead the economy during the eventual rebound once virus mitigation is complete.”

Northeast gains
The Northeast saw a significant rise in new home sales in February, increasing 38.9%. Meanwhile, they were 1% higher in the South but down 7.3% in the Midwest and 17.2% in the West.

Inventory fell to a 5 months’ supply, with 319,000 new single-family homes for sale, 6.7% lower than February 2019.

Post a Comment

Most Trending News

Training new skilled trades workers must be a priority

While there has been a deceleration in new home sales, we must keep the pedal to the metal and continue to train skilled trades workers for the future.

Read More
To build 1.5M homes, we must think outside the box

Many jurisdictions in the U.S. have been thinking outside the box to boost the housing supply. Here in Ontario, we’d be wise to follow suit.

Read More
Upcoming free event: Canadian Real Estate Investment Summit

This free summit will feature top experts in Canadian real estate who will share their knowledge on a broad range of topics. It will be presented on Sat. Jun. 18th from 12pm-3pm.

Read More