U.S. new home sales fell 1.6 percent in February, but prices jumped to their highest level in eight months, the U.S. Commerce Department and Census Bureau said Friday.
Sales rose to a seasonally adjusted annual rate of 313,000 units, down from January's downwardly revised 318,000 units. Last month, 321,000 new January home sales were initially reported.
Sales missed expectations from economists surveyed by Reuters, who had predicted sales of 325,000 units.
February sales were 11.4 percent higher than the same period in 2011.
The median price of a new home rose 8.3 percent to $233,700, the highest level since June.
New home sales made up only around 7 percent of the housing market last year, but new construction is an important economic driver that creates jobs. New homes are also generally more expensive than resales.
Sales of existing homes also fell in February to an annual rate of 4.59 million, according to the National Association of Realtors, but pricing increased.
SOURCE IBTimes
