WASHINGTON - New home sales dropped to a record low of 308,000 homes purchased at an annual rate in February, as inventories continue to rise, the Commerce Department reported today.
Sales fell 2.2% from the January sales total, which was revised higher to 315,000 from 309,000. December sales were revised to 345,000 from 348,000.
The February new home sales record low followed a record in January. The data series began in 1963. Sales have fallen for four straight months.
Economists polled by Thomson Reuters expected 320,000 new home sales for the month, according to the median estimate.
The supply of new homes rose for the fourth straight month to 9.2 months from 8.9 months in January. The number of new homes for sale increased to 236,000.
Median sales prices increased in February, gaining 5.2% to $220,500 from a year ago and 6.1% from January.
The new home sales report follows February figures on existing home sales released Tuesday. Existing home sales fell 0.6% to 5.02 million, the National Association of Realtors reported. Inventories of existing homes also increased in February.
