Sales of new U.S. single-family homes fell in February after surging in the prio...
WASHINGTON - Sales of new U.S. single-family homes fell in February after surging in the prior month, and could decline further because of the coronavirus pandemic which is boosting unemployment and severely disrupting economic activity.
Economists polled by Reuters had forecast new home sales, which account for more than 10% of housing market sales, declining 2.0% to a pace of 750,000 units in February. The coronavirus has brought much of the United States to a halt as state and local governments enforce “social distancing” policies aimed at containing the highly contagious virus, virtually closing all restaurants, bars, cinemas and theaters.
Last month, new home sales fell 7.3% in the Midwest and tumbled 17.2% in the West. They soared 38.9% in the Northeast and rose 1.0% in the South, which accounts for the bulk of transactions. Completions of single-family housing last month were the highest since December 2007, and the inventory of homes under construction rose to levels last seen in December 2006.
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