The U.S. real estate market has been sluggish in recent history, but the latest numbers hint that the sector may enjoy a stronger run of growth in the spring. The supporting evidence is still thin, although the sales trend has clearly improved in February, particularly for purchases of newly built single family homes. Is this a sign that the property market is firming? If it is, the outlook for the U.S. economy will improve a bit.
At the moment, it’s still unclear if the latest releases are noise or mark a change for the better that will endure. But reviewing the latest sales data certainly inspires a brighter view. New home sales were particularly strong in February, rising 7.8% to a seasonally adjusted annual rate of 539,000 – the highest in seven years. The news is all the more striking because February was a rough month in several parts of the country in terms of winter weather.