Excellent news out today regarding the nation’s new home sales in February. This article from Bloomberg highlights some of the reasons for the strong new home sales numbers, and points to continued optimism heading into the busy Spring home buying season.
Purchases of new homes in the U.S. unexpectedly rose in February to a seven-year high as stronger job gains helped bolster industry activity amid severe weather.
Sales climbed 7.8% to a 539,000 annualized pace, the most since February 2008, Commerce Department data showed Tuesday. The reading exceeded even the most optimistic forecast of economists surveyed by Bloomberg.
Americans withstood weaker income gains and higher property prices, braving a chillier-than-usual February to go out and buy a home last month. Further healing in the labor market and a boost in inventory should provide stronger support to an industry entering its busiest sales season.
“You have solid job growth, income growth is a little bit soft but still positive, still very low mortgage rates, gradually easing access to credit,” Gus Faucher, senior economist at PNC Financial Services Group in Pittsburgh, said before the report. “I would expect we’d see further gains over the course of this year.”
