New Home Sales Dive Sharply In February, Down Over 18%

New home sales rose by a seasonally-adjusted annualized rate of 775,000 in February, way below the consensus estimates.

New Home Sales Dive 18.2%

The Census Department's New Residential Construction Report for February 2021 shows a steep, and unexpected dive in new home sales 

Seasonally Adjusted Annualized Sales By Region

  • US: 775,000 Down 18.2%
  • Northeast: 38,000 Down 11.6%
  • Midwest: 85,000 Down 37.5%
  • South: 458,000 Down 14.7%
  • West: 232,000 Down 16.4%

Not Adjusted Sales By Region

  • US: 64,000 
  • Northeast: 3,000 
  • Midwest: 7,000 
  • South: 37,000 
  • West: 17,000 

The seasonally-adjusted annualized sales numbers give bloated look at what's really happening. 

Economic Consensus 

The Econoday economic consensus was 875,000 SAAR in a range of 825,000 to an amazingly overoptimistic 970,000 units. 

Even the lowest estimate was lofty. 

Some analysts blame the weather. It will take another month or two to see if rising interest rates and affordability are the real problems.  

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