Contracts for new U.S. home sales expanded by 6.1% in February, according to estimates from HUD and the Census Bureau. Sales growth continues along a positive trend for the market, which is supported by solid job growth, improving household formations, continuing favorable housing affordability conditions, and tight existing home inventory.
The seasonally adjusted annual pace for February new single-family home sales was 592,000. This is 6.1% better than January and a 12.8% gain over a year ago. A mild winter in much of the country likely supported this year-over-year improvement.