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WASHINGTON – Sales of new homes fell in February after climbing to the highest level in more than four years in January.
Sales dropped to a seasonally adjusted annual rate of 411,000 in February, the Commerce Department reported Tuesday. That is a decline of 4.6 percent from the January level of 431,000, which had been the strongest sales pace since September 2008.
The decline in February still left sales 12.3 percent higher than a year ago. While sales remain below the 700,000 level considered healthy, the housing recovery is gaining strength and is starting to look sustainable.
By region of the country, sales were up only in the Midwest, which saw a 13.7 percent increase. Sales fell in every other region, led by a 13.3 percent drop in the Northeast, where severe winter weather likely dampened activity. Sales were down 9.7 percent in the South and fell 2.1 percent in the West.
Last week, the National Association of Realtors reported that sales of previously owned homes rose 0.8 percent in February to a seasonally adjusted annual rate of 4.98 million units. That was the fastest sales pace since November 2009 when a temporary homebuyer tax credit had boosted sales.
The Greater Albuquerque Association of Realtors reported 542 existing home sales in February, a 7 percent increase from a year earlier and the best February for home sales since 741 were sold during the month in 2007.
The median sales price in the metro rose 4.3 percent to $168,500 in February from a year earlier, compared to a year-over-year increase nationwide of 11.6 percent to $173,600. The median price includes both conventional single-family homes and attached homes and condos.
In terms of market health, the Albuquerque metro had a 5.8-month supply of homes for sale in February, compared to an average supply of 4.7 months nationwide. As a rule of thumb, a six-month supply is considered a balanced housing market.
Low inventories are seen as just one of several constraints. First-time homebuyers are viewed as critical to any sustainable housing recovery. They made up 30 percent of existing home sales in February, still well below the 40 percent that is typical in a healthy market.
