New Home Sales Drop 3.9% in February

Washington, DC, March 26, 2007–Sales of new-homes fell 3.9% to a seasonally adjusted annual rate of 848,000, the lowest since June 2000, the Commerce Department reported Monday.

Economists had been expecting an increase in February to about 1.00 million units.

Sales were down 18.3% compared with February 2006.

Inventories of unsold homes rose 1.5% to 546,000, representing an 8.1-month supply, the largest inventory in relation to sales since January 1991.

The inventory is up 26.6% in the past 12 months.

The median price of a new home was $250,000, down 0.3% compared with February 2006.