Washington, DC, March 24, 2006--New home sales dropped 10.5% in February to their lowest level since May 2003, according to the Commerce Department.
The decline was larger than forecast. Economists expected sales to slip to 1.21 million.
Sales in January were revised lower to a 1.207 million unit pace from 1.233 million previously estimated. The inventory of unsold homes on the market rose by 4.4% to a record 548,000, representing a 6.3-month supply at the February sales pace. This is the largest month-supply since January 1996.
The median sales price fell by 2.9% year-over-year to $230,400 in February.
