New home sales increased 1.8% MoM to 676,000 in February, slightly below expectations of 680,000 and up 5.1% YoY.

• Inventory saw a slight drop of -1.1% MoM but was up 2.3% YoY. In terms of months supply, inventory is roughly the same compared to a year ago (8.9x in February 2025 vs 8.7x in February 2024). This suggests that, broadly, the supply situation is only gradually improving.
• Sales in February were heavily weighted in the sub-$400,000 price range with 49% of homes sold falling in that segment and 34% falling specifically in the $300,000-$399,999 category.
• As a result, the median sales price dropped to $414,500 in February, down from $427,400 in January and $420,900 a year ago.