Daily Management Review

U.S. new home sales fall lower than forecast in February


Sales of new homes in the U.S. in February fell 18.2% from the revised January figure to 775,000, according to the U.S. Commerce Department's Census Bureau.

Analysts polled by DailyFx had expected the figure to drop only 6.5% from the previous month's initial figure to 875,000. The January figure was revised to 948,000 from 923,000.

Compared to February 2020, when the indicator was 716 thousand, new home sales in the U.S. in the reporting month showed an increase of 8.2%.

New Home Sales is an important indicator of the health of the real estate market and the economy as a whole. 

An increase in New Home Sales leads to higher spending by new homeowners on furniture and utilities, which in turn stimulates demand for goods, services and labor. In addition, more than half of all construction in the U.S. is residential. Thus, the dynamics of residential real estate sales are passed down the chain to other sectors of the economy.

source: dailyfx.com