Dive Brief:
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It turns out house hunters aren’t afraid of a little snow—or even a lot. Despite harsh weather over much of the country last month, sales of new homes spiked 7.8% from January—far above predictions tempered by expectations that people wouldn’t shop for new homes in the snow.
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February’s sales of single-family homes reached a seven-year high and finished the month at a seasonally adjusted annual rate of 539,000. Economists had predicted that sales would drop by 4% between January and February. Compared with sales in February 2014, last month’s sales were 25% higher.
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The National Association of Realtors reported Monday that sales of existing homes also rose in February, by a modest 1.2% from January.
Dive Insight:
Even with February’s surprise surge, the pace of home sales remains slow. Still, economists and housing analysts predict sales will gradually pick up throughout the year.
An uptick in housing, manufacturing, job creation, and gasoline prices boosted the economy a bit in February, an improvement that Fannie Mae Chief Economist Doug Duncan said will help “drag housing upward. …Overall, we expect an improving 2015 with continued economic growth bringing housing above 2014 levels."