MNI DATA IMPACT: US Feb Home Sales Rise 4.9% To 667k SAAR>

--Headline Increase Led By 28.3% Gain in Midwest Region

--February Homes Supply Down 0.6%; Months Supply Down To 6.1 Months

By Shikha Dave and Harrison Clarke

     WASHINGTON (MNI) - New single-family home sales rose by 4.9% to a 

667,000 annual rate in February, led by increases in sales in the 

Midwest, South, and Northeast regions, data released by the Commerce 

Department Friday showed. 

     The new home sales pace was well above the 616,000 rate expected by 

an MNI survey of analysts and the 620,000 Bloomberg consensus, and 

followed an upward revision to January and a downward revision to 

December. As a result, market participants are likely to see the 

February increase as a positive factor. The unadjusted sales pace was 

14.3%, above its year ago level. 

     Here are the key findings from the release:

     -New homes sales in January were revised up to a 636,000 pace from 

the 607,000 previously announced rate. The December pace was revised 

down to 588,000 from 652,000. Given the sales pace for January and 

February, the first quarter sales pace of 652,000 lies above the fourth 

quarter average of 584,000. 

     -When broken down regionally, the increase in February headline 

sales was due to gains in all regions except for the West. There were 

increases in the Northeast (+26.9%), the South (+1.8%), and the Midwest 

(+28.3%) and a flat reading for the West. 

     -The supply of new homes for sale fell by 0.6% in the month to a 

level of 340,000. The current level of supply is 13.3% higher than a 

year earlier, suggesting that supply is adequate to meet demand. 

     -Based on the movements in sales and supply in February, the 

months' supply fell to 6.1 months from the January months' supply of 6.5 

months. The February months' supply was also up from its 5.4 months 

level a year ago. Supply of new homes remains fairly high relative to 

sales, as opposed to the very tight supply of existing homes available 

for sale. 

     -The median sales price rose by 3.8% to $315,300 from $303,900 in 

January. The median price stands 3.6% below the $327,200 level in 

February 2018. 

     ** MNI Washington Bureau (202) 371-2121 ** 

[TOPICS: MAUDS$,MT$$$$,M$U$$$,MAUDR$]