Sales of New Houses Drop 2.2% Month-to-Month

New home sales fell for the fourth consecutive month in February but sales were down by only 2.2%, despite severe winter weather in many parts of the country. The U.S. Census Bureau reported that sales of newly constructed homes fell to a seasonally adjusted annual rate of 308,000 in February from a 315,000 rate in January. The January rate was revised upward from 309,000, which means the drop in sales from December to January was 8.9%, as opposed to 11% as originally reported. The Census Bureau report shows that sales in February fell 20% in the Northeast and 18% in the Midwest. Sales were up 20% in the West. New home sales have slumped to the lowest level since 1963, according to Weiss Research analyst Mike Larson. "The market remains stuck in the doldrums," he said. But he expects some pick up in sales in March and April with the homebuyer tax credit due to expire at the end of April. "The credit-fueled pop won't be anything like what we saw the first time around, however," Larson said.