How Sales of New US homes Declined

Sales of new houses in the United Statesdropped slightly in February for a second month, being an unexpected decline in housing market.

According to Commerce Department, the new home sales fell to an annual rate of 313,000 during the month.  That was a 1.6% decline compared with January’s 318,000 sales but 11.4% above last February’s 281,000.

Economists said that the housing market is a long way from fully recovering.

“Despite renewed hopes over the turn of the year for an imminent turn in housing, it appears that it is too early for such optimism to translate into a rapid pick-up in real activity,” said Yelena Shulyatyeva, an analyst at BNP Paribas.

Though new home sales represent less than 10% of the housing market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to the National Association of Home Builders.

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