New Home Sales Slow in February

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Sales of new homes in the United States fell 4.6 percent from the previous month, but still posted the second highest total since April 2010, according to new data from HUD and the U.S. Census Department.

A seasonally adjusted total of 411,000 units were sold in February, compared to 431,000 in January. Sales have been running at a "fairly steady pace,"

"The February decline is a readjustment to the unusually high numbers that we saw in January, and we are still in line with our forecast for 2013," said NAHB chief economist David Crowe. "This is the kind of modest but steady growth we are expecting to see throughout the year as the economy and job market continue to improve, but constraints on borrower credit, higher building material prices and a limited supply of labor and buildable lots hold back a more robust recovery."

The Midwest posted a gain of 13.7 percent for the month, while the Northeast, South and West showed declines of 13.3 percent, 9.7 percent and 2.1, respectively, the agency reported.

The inventory of new homes increased to 152,000 units in February, which is a 4.4-month supply at the current sales pace. Although this is an increase over the previous month, it is still well below normal inventory trends.