According to the latest report from the U.S. Census Bureau and Department of Housing and Urban Development, February sales of single family houses were cited at a seasonally adjusted rate of 512,000.
This number represents a 2 percent increase above the revised January rate of 502,000. However, February 2016's total was below the rate of 545,000 seen in 2015.
The median sales price of a home was around $302,000, while the average sales price was somewhere around $348,900. At the end of February, a total of 240,00 homes were for sale, and this translates to just over five months of supply at the current sales rate.
These numbers, and other economic factors, indicate the housing market is in good shape moving forward, Lindsey Piegza, chief economist at Stifel, told HousingWire.
"While volatile month-to-month, a modest improvement in February new home sales helps reinstate confidence that the U.S. housing market remains on positive footing, albeit fragile," Piegza said.
She added that a few factors have tempered expectations of large scale movement on the housing market. Incomes have not grown by much and rising interest rates are the two biggest worries. Many potential buyers still believe the economy is not fully recovered and the slightest shake up can cause markets to tumble.
It should be noted, however, that while the U.S. Federal Reserve did raise benchmark interest rates in December 2015, they have yet to do so three months into 2016. In late March, Federal Reserve Board Chair Janet Yellen remarked that the Fed is in no rush to raise interest rates and will take things slowly, according to CNBC.
Many commentators noted that Yellen has carefully examined the economic circumstances surrounding regular Americans and is not just taking the considerations of Wall Street into account. Even so, the market rallied following Yellen's comments.
"A more cautious Fed should be good news for markets," said Robert Tipp, the chief investment strategist at Prudential Fixed Income to CNBC.
Moving forward, the housing market will still continue to play a vital role in the health of the economy, but Piegza cautioned it may not be the catalyst of exponential growth.
It's also important to consider that February's low housing sales could be partly attributed to the rough start global markets went through at the start of 2016. For the foreseeable future, those worries seem to be cast aside as markets have calmed since then.