Some economists not so glum on February home sale slump

While reports of February’s 2.2 percent drop in sales of newly constructed homes included some dire predictions of a double-dip in housing prices and activity, a handful of economists interviewed Wednesday by The Palm Beach Post felt differently.

“It’s not a great report, but not truly awful either,” said Mike Larson of Weiss Research, Inc. in Jupiter. “This market just remains stuck in the doldrums.”

The new-home sales report, which was released Wednesday by the Commerce Department, shows sales have been dropping since October. That’s likely, in part, because of a first-time home buyer tax credit hangover.

The wintry weather, which socked in many parts of the country last month, didn’t help either, said David Crowe, chief economist with the National Association of Home Builders. Crowe said he expected February to be “soft.”

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