Dive Brief:

• New single-family home sales increased 2.0% between January and February to an annual rate of 512,000, the Commerce Department reported Wednesday. February's rate was 6.1% below the pace in February 2015.
• The median sales price of homes sold in February was $301,400, up from $278,800 in January.
• The gain in new home sales last month was led by a 38.5% surge in the West. All other regions saw declines in February, with sales falling 24.4% in the Northeast, 17.9% in the Midwest, and 4.1% in the South. 

Dive Insight:

New home sales, which represent about 10% of all home sales, slightly topped expectations in February, as economists surveyed by Reuters had predicted sales would rise to 510,000.

The extreme spike in sales in the West was expected, as it followed a 32.1% plunge in the region in January. Experts blamed the drops in sales in all other regions on tight inventory and snow storms, which likely affected contract signings. 

Still, the residential industry remains hopeful for a strong spring buying season, as an improving job market encourages buyers to feel more comfortable making major purchases.

So far this month, housing market reports have been mostly positive, as builder confidence held steady at a score of 58, and housing starts rose 5.2% in February to a 1.18 million annualized rate. However, on the negative side, existing home sales dropped 7.1% last month.