The sales of newly built homes sky rocketed to the highest rate in seven months this February. The demand for housing has outweighed the lean supply and the slightly higher mortgage rates. In fact, new-home sales ran at a seasonally adjusted annual rate that is 6.1% more than in January and 12.8% higher compared to last February’s level.
The economists that were surveyed by Market Watch stated that February’s reading was the second-highest of the economic cycle. At February’s sales pace, it would take 5.4 months to wipe out available inventory, slightly tighter than the 5.6 months of supply available in January, but it is still a very good representation of a balanced market.
Housing analysts and economists have awaited a stronger new-home market to meet the surging demand for housing since the recession ended. And, although the rate of new-home construction has continued to pick up slowly and steadily, it still remains well below long-term averages.
That hasn't stopped the builders from building, or the buyers from buying.