Data released today showed that new home sales rose 4.9% in February. According to analysts at Wells Fargo, discounting has helped bring back home buyers.
“The weakness in sales during the fourth quarter and fears the Fed would continue to hike interest rates encouraged builders to slash prices late last year, particularly in the West. Prices are now below their year-ago level and that is bringing back buyers.”
“Lower mortgage rates are also bringing buyers back, particularly in the South and West, and are still falling.”
“While today’s good news on home sales is certainly welcome, the improvement comes at a seasonally slow period and was exaggerated by seasonal adjustment.”