Sales of new homes dipped last month.
The Commerce Department reported that newly built homes sold at a seasonally adjusted annual rate of 411,000 in February. That was 4.6% below the previous month but up 12.3% over the year.
New-home sales numbers can be volatile month to month. Overall, the market for new construction has improved this year and builders have increased prices. The median sales price for a new home was $246,800 last month, the government reported.
Supply has remained tight as few new homes have been built in recent years. The government estimated that about 4½ months of supply was on the market. Typically economists see about six months' worth of supply as a balanced market.