New single-family home sales fell 1.6% in February to a seasonally adjusted annualized rate of 313,000 units, but prices jumped to their highest level in eight months, according to government figures released Friday morning.
The Commerce Department reported that the median price for a new home rose 8.3% to $233,700, the highest reading since June of last year. Compared to February 2011, the median price is up just over 6%.
Sales for November and December were revised up a bit. Overall, new home sales account for about 7% of the housing market.
Sales activity was strongest in the Northeast and West, but slumped in the South and Midwest.
Home builders and Realtors continue to complain about tight underwriting standards in the residential lending industry, which they believe is stifling any meaningful recovery in the housing market. Mortgage bankers tend to agree, but blame loan standards on the secondary market agencies, Fannie Mae and Freddie Mac.
The 'alt-A' market, which caters to self employed borrowers, is nearly non-existent, leaving these potential borrowers out in the cold.
The housing market, of course, still has an excess supply of existing homes for sale, including a huge REO inventory which is likely to swell in the months ahead now that the robo-signing deal has been signed.
