New home sales drop 4.4% in February, with more decline expected

The U.S. Commerce Department said new home sales fell 4.4% in February to a seasonally adjusted annual rate of 765,000 homes, down from 800,000 in January. Economists are warning that home sales are expected to take a big hit in coming months due to the coronavirus outbreak.

The report showed that the median price for a home sold in February was $345,900, up 6.3% from $325,900 in January. By region, home sales surged 38.9% in the Northeast, a huge gain attributed to warmer than usual weather. Sales were up 1% in the South, fell by 17.2% in the West and were down 7.3% in the Midwest.