The U.S. Commerce Department announced on Tuesday that the sales of new single-family homes plunged 18.2 percent m-o-m to a seasonally adjusted annual rate of 775,000 units in February. That was the lowest reading since May 2020.

Economists had forecast the sales pace of 875,000 last month.

January’s sales pace was revised up to 948,000 units from the originally reported 923,000 units.

According to the report, new home sales in the South, the largest area, fell 14.7 percent m-o-m in February. Meanwhile, sales in the Midwest tumbled 37.5 percent m-o-m and those in the West decreased 16.4 percent m-o-m. In the Northeast, new home sales dropped 11.6 percent m-o-m in February.

In y-o-y terms, new home sales were up 8.2 percent in February.